The divestment ministry would concentrate on "legal option" to resolve the divestment impasse arising out of the Supreme Court verdict on Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, but would continue with residual stake sale plans in companies like CMC Ltd and Videsh Sanchar Nigam Ltd.
"We are concentrating on legal option, at this point," Divestment Minister Arun Shourie told reporters on the sidelines of a WEF-CII seminar in New Delhi on Tuesday.
He said the sale of residual stake in companies like CMC, VSNL and IBP will "go on".
Asked if the government would proceed with divestment of companies other than oil PSUs, Shourie said, "Divestment in all companies has been stopped for the time being, including Shipping Corporation of India and Hindustan Copper Ltd as we are facing the same difficulties."
"Let things be clarified first," he pointed out.
On whether the recent observation of the apex court -- of taking a fresh look at its judgement on HPCL and BPCL which had stalled privatisation of the two oil PSUs -- would give an impetus to divestment of oil companies, Shourie said, "Anticipating SC judgement is contempt of court, so I will not comment."
The Supreme Court, on November 17, said it wanted to have a fresh look at its earlier judgement on HPCL and BPCL sell-off cases according to which privatisation of PSUs created by legislation required prior approval of Parliament.
This observation came after Attorney General Soli J Sorabjee contended that although many decisions for privatising PSUs had been taken prior to the September 16 judgement halting privatisation of oil PSUs for want of prior Parliamentary approval, these have now been challenged in many high courts relying on the HPCL judgement.
The apex court also stayed the proceedings before various high courts on petitions challenging the divestment of SCI, HCL and Burns Standard Corporation Ltd as the Centre sought transfer of these petitions to the Supreme Court for an authoritative pronouncement.
Meanwhile, the process of selling residual stakes in companies has already been kicked-off and the government has invited initial bids for appointment of advisors for divesting its residual stakes in CMC and IBP, through offer for sale in the domestic market.
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