In a climbdown from its earlier stance of an initial public offer (IPO) before strategic sale in downstream companies HPCL and BPCL, the petroleum ministry is now open to the idea of a strategic sale provided other PSUs like ONGC are allowed to participate in the sell-off. The ministry of disinvestment, however, has raised its pitch on keeping public sector companies out of the sell-off process.
"There cannot be different sets of policies for different companies. If PSUs have been allowed to bid for other PSUs as in the case of Engineers India Ltd, we see no reason why there should be a change in policy. The CCD had barred only IOC (Indian Oil Corporation) from bidding for HPCL and BPCL and imposing any restrictions on other PSUs would only narrow down the competition and bring down the price realisation from the strategic sale," a senior petroleum ministry official said.
A senior divestment ministry official, however, told Business Standard: "Whatever be their (petroleum ministry's) opinion, we firmly believe that state-owned should not be allowed to bid for PSUs.
