SC ruling review may put selloff back on track

The disinvestment ministry had set a tight schedule for offloading the government's stake in several companies within this fiscal.

For instance, if there had not been an impasse on the HPCL disinvestment, the company would possibly have been in private hands by the end of this month.

In fact, Reliance had completed due diligence of the company and Shell was in the process of doing so, when all work on its disinvestment came to a grinding halt.

For BPCL, too, the process was halted following the apex court's judgment. The market offering, both domestic and international, of 35.2 per cent of BPCL's equity was tentatively scheduled for February next year.

The Supreme Court yesterday transferred to itself all petitions pending against the disinvestment of Hindustan Copper Ltd (HCL), Shipping Corporation of India (SCI), Burn Standard and Company Ltd (BSCL) and National Fertilisers Ltd (NFL) in various high courts.

The first three have been set up by full or partial nationalisation. While price bids for HCL were called before the judgment on the two oil majors, bids for SCI were called after it.

The preparation of the data room and the due diligence exercise of Burn Standard was done after the September 16 judgment.

The Ghatsila complex of HCL was nationalised by the Indian Copper Corporation (Acquisition of Undertaking) Act, 1972.

The last date for submitting financial bids for the company was October 14, later extended to November 30.

The Indian Copper Complex Workers Union has approached the Jharkhand High Court while another four unions of the Khetri Smelter Complex has approached the Supreme Court. Writ petitions have been filed in the Madhya Pradesh High Court also.

The SCI employees' union had filed a writ petition in the Bombay High Court as two shipping companies, Jayanti Shipping and Mogul Lines, had been nationalised and later merged with SCI.

Price bids had been called for October 20, but later extended to November 30. Official sources said that both for SCI and HCL the bids would be further deferred pending clearance by the judiciary.

There is also the curious case of BSCL. Even though its disinvestment has been challenged, but not on the obvious case for the need of Parliamentary approval.

The government took over management of the company from the two private promoters ""Burn and Company Ltd and Indian Standard Wagon Company Ltd "" and nationalised it in April, 1975.

The Burn Standard Employees' Union has however, stalled its disinvestment by filing petitions in the Calcutta High Court for wage revision and other related labour problems.

There are four parties in the fray for 60 per cent stake in the wholly owned subsidiary of Bharat Bhari Udyog Nigam Ltd.

For, NFL the bone of contention is not whether parliamentary approval is mandatory for disinvestment.

The price bids were received on September 4, around the time that the Punjab and Haryana High Court allowed the NFL employees' union to bid for the company.

The three bids that had been received were below the strategic price of NFL and the disinvestment ministry and the union are still battling it out in the high court on the modalities for the latter's bid.

Divestment schedule disrupted

HPCL: The divestment process was to have been completed this month

BPCL: The market offering, both domestic and international, of 35.2 per cent of BPCL's equity was tentatively scheduled for February next year

HCL: The last date for submitting financial bids for the company was October 14, later extended to November 30

SCI: The government had asked price bids for the company to be submitted by October 20, and later extended it to November 30