Govt identifies 8 PSUs for strategic sale before Dec-end

Govt identifies 8 PSUs for strategic sale before Dec-end

NEW DELHI, MAR 31: The Government has identified eight public sector undertakings, viz Indian Tourism Development Corporation (ITDC), Hotel Corporation of India (HCI), Balco, IPCL, IBP, Indian Airlines, NFL and Hindustan Copper for strategic sale by December-end.

The Government is selling off over 26 per cent stake in each of these companies to a strategic partner, as part of its move to mop-up Rs 10,000 crore through disinvestment during 2000-01.

Baijal said the Department of Disinvestment has called a meeting with consultants to work-out details of disinvestment in ITDC. Government had appointed Lazard Capital as consultant for ITDC sale.

"We will soon begin discussions with Lazard Capital to work out various modalities in ITDC disinvestment," Baijal said, adding other details including the framing of a shareholders agreement, the valuation etc are also expected to be finalised soon.

On Modern Foods Ltd (MFL), the only PSU where government sold majority stake to a strategic partner, Baijal said the sale has helped the company from slipping into red for the third consecutive year.

"Everyone has gained from the sale of majority stake in MFL to Hindustan Lever," Baijal said. "At one stroke, all Modern Food employees have become employees of Hindustan Lever. Any day, I would be proud to work in a company like HLL," he said adding HLL has already stated there would not be any retrenchment of workforce of MFL.

"Even if there are any retrenchments, the policy calls for a liberal VRS scheme," he said. On criticism that the government received far less price for Modern Foods, Baijal said that Rs 160 crore (for 100 per cent stake) bid by HLL was much more than the government's own estimates of Rs 30-70 crore for the MFL stake. Calculating on the basis of price by earnings ratio, MFL had zero P/E ratio as it was a loss making unit, he said.

Earlier disinvestments in GAIL and VSNL had been done at a P/E ratio of 6-7 per cent, he pointed out. "Everybody gained by the MFL sale and we wanted to speed up the disinvestment process by taking away bureaucratic hurdles coming in the way," he said.

Yadav says no

PANAJI: Union aviation minister, Sharad Yadav today said the Centre was keen to allow foreign equity participation in Air India but would not compromise on nation's interest.

``We will see that the ownership remained with us'', he said while addressing a press conference after the two-day meeting of the parliamentary consultative committee attached to the civil aviation ministry.

Stating that the civil aviation policy had already been put on the web site, the Union Minister said however foreign participation would not be allowed in domestic airlines sector.