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Government okays disinvestment in five PSUs

The Union Cabinet on Wednesday night approved firm disinvestment plans for five Central public sector undertakings -- Engineers India Limited, India Tourism Development Corporation's Ranchi Ashok Bihar Hotel Corporation, ITDC's Utkal Ashok Hotel Corporation, Indian Petrochemicals Corporation Limited and Madras-based Hindustan Teleprinters Limited.

The Cabinet meeting chaired by Prime Minister A B Vajpayee also okayed a proposal for appointment through global competitive selection of merchant bankers / advisors to work out modalities of disinvestment of Central government equity in Fertiliser and Chemicals Travancore Limited, National Fertilisers Limited, EIL, IPCL and HTL.

Today's Cabinet approval allows EIL to sell 26 per cent of government held equity to a strategic buyer along with the provision of joint / rational management control. Permission is also given to sell ten per cent each of the equity to EIL employees and public sector customers of EIL expertise. Another 18 per cent is to be sold to financial institutions.

Total disinvestment is approved for ITDC's two units -- Ranchi Ashok Bihar Hotel Corporation and Orissa's Utkal Ashok Hotel Corporation. The inter-ministerial group already constituted for ITDC would process the disinvesment proposals for these two companies.

For IPCL, the decision is to sell off 25 per cent of the government held equity along with the transfer of management control.

The Cabinet approval for HTL is for the sale of 50 per cent of the equity to a strategic partner.

The meeting specified that for the present there was no disinvestment proposal for Steel Authority of India Limited.

UNI

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