Amid mounting political pressure, the Cabinet Committee on Disinvestment (CCD) meeting on Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) scheduled for tomorrow has been postponed to September 7.
In a new twist to the controversy, defence minister George Fernandes has expressed security concerns relating to disinvestment of BPCL and HPCL in a letter to Prime Minister Atal Bihari Vajpayee. His letter assumes significance as the downstream petroleum companies play a crucial role in maintaining strategic oil reserves in times of war, an issue that was highlighted by petroleum minister Ram Naik too in his missive to the Prime Minister.
Petroleum ministry sources said the government must take into consideration the defence minister's concerns while taking a decision on the sell-off of BPCL and HPCL. Fernandes' presence in the CCD meeting was necessary to address his concerns, they added.
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A disinvestment ministry source, however, questioned the contention terming it "yet another effort to scuttle or delay" the sell-off process. "The government can always ensure adequate petroleum reserves are maintained by these two companies even if they are in private hands," the source said.
Fernandes' opposition to the sell-off is not too surprising given his association with he RSS-backed Swadeshi Jagran Manch (SJM), which has decided to go whole hog against the government's economic policies.
SJM's campaign theme for a week-long agitation from September 25 is focussed around the anti-people's economic policies of the government and the adverse impact of WTO in India. "We are taking a serious view of the government's economic policies," SJM convenor Murlidhar Rao told Business Standard.
The offensive against the Vajpayee government was planned in a meeting of the SJM's office-bearers in Chitrakoot last week and attended by SJM co-convenor S Gurumurthy and former BJP general secretary KN Govindacharya. Signficantly, RSS joint general secretary and in-chairge of the BJP affairs, Madan Das Devi was also present in the meeting which reflected strong anti-government mood in the SJM.
The SJM has particularly raised serious objections to the proposed strategic sale of shares in the HPCL and the BPCL as part of the disinvestment process. Backed by the RSS, the SJM leadership favoured the idea of selling shares in public to pool in money for these public companies.
"We will oppose the strategic sale" Rao said. Unlike the past, the RSS has declined to restrain the SJM from going on the offensive against the government this time.
That the government would not be able to ignore the warning signals from the SJM is evident by the fact that those leading the offensive include senior leaders of various factions of the Sangh Parivar having close rapport with the government.