Govt postpones Bhel selloff indefinitely

Sale of 8% holding in Maruti on backburner too.

Heavy Industries Minister Santosh Mohan Deb today said the government had indefinitely put off the disinvestment of its stake in Bharat Heavy Electricals Ltd. This has also placed the issue of disinvesting its 8 per cent stake in Maruti Udyog Ltd on the backburner.

In what could be an official admission by the government that it was not pushing for Bhel's disinvestment for the time being, Deb said, "It is on a stand-by mode due to administrative reasons. No time frame has been decided." The Cabinet had set October 2005 as the deadline for the completion of the disinvestment process.

He, however, did not elaborate on the "administrative reasons" that had put the process on hold. This happened at a time when the government was finalising the expressions of interests (EoIs) filed for the disinvestment process.

Earlier in the year, the Cabinet had also scheduled disinvestment of the government's residual stake in Maruti Udyog. To this, Deb quipped, "Maruti will be in my pocket for now."

The proceeds from the disinvestment were to be a part of the National Investment Fund. Later, they were to be used for various social sector projects and for strengthening other public sector enterprises. The 10 per cent disinvestment of Bhel would have yielded more than Rs 2,000 crore.

The Left parties had threatened to go on a nation-wide strike next month if the government went ahead with the disinvestment of profit-making PSEs.

"After consultations with all the stakeholders, we will arrive at a decision to go ahead with the sale of minority stake in 'navratna' companies. We will take everyone into confidence," Deb said.

The government also decided to refer lubricants firm Tide Water Oil to the Board for Reconstruction for Public Sector Enterprises, to reconsider its disinvestment.

Earlier, the government had indicated that it wanted to sell its entire 27 per cent stake in the PSE. Oil and Natural Gas Corporation had reportedly shown interest in buying the government equity.

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LOGJAM

THE CABINET had set October 2005 as the deadline for the completion of the disinvestment process

THE PROCEEDS from the disinvestment were to be a part of the National Investment Fund

THE 10 PER CENT disinvestment of Bhel would have yielded more than Rs 2,000 crore

THE LEFT parties had threatened to go on a strike next month if the government went ahead with the disinvestment of profit-making PSEs