The Commission which submitted its tenth report to the government suggested disinvestment of government stake of upto 49 per cent in ONGC in domestic and international market when conditions were favourable, but said it should be deferred until investor confidence in the company improves. The Commission, headed by GV Ramakrishna, recommended transfer of management control of MMTC to a private partner through divestment of 51 per cent of equity to a strategic partner.

The oil exploration company was referred again to the Commission in the wake of government's announcement regarding dismantling of Administered Pricing Mechanism (APM) and New Exploration and Licensing Policy (NELP) legislation.

The commission said given the financial health of PPL, implementation offinancial restructuring, including writing off its accumulated losses and infusing Rs 70 crore, was a must to avoid referral of the company to Board for Industrial and Financial Restructuring (BIFR). It said the restructuring would enable the government to recover its investment in the fertiliser company as there would be investor interest in acquiring majority stake in PPL.

After the strategic sale, the commission said the government could disinvest its balance holding through public issue under favourable market conditions. Categorising NMDC as a core company, it said government could offer upto 20 to 25 per cent stake in the company to a foreign partner who could tie up with the Indian mining company in their overseas ventures.

The commission said if divestment of upto 20 to 25 per cent to a selected joint venture partner was not found feasible, equity upto 49 per cent should be sold in stages either in domestic or international market. On PEC, the commission said in case there was no significantincrease its turnover and profitability within a period of two years, the government should offer 100 per cent equity in the company to a strategic buyer. "In the absence of investor interest in PEC, there will be no alternative but to close the company," it added.