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Disallow one PSE from bidding for another — Shourie

By Our Staff Correspondent

MUMBAI SEPT. 5. The Cabinet Committee on Disinvestment which is scheduled to meet on September 7, regarding the strategic sale of Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL), will also consider recommendations of the core group of secretaries to disallow public sector enterprises (PSEs) from bidding for another PSE.

"Among the four to five items on the agenda is the recommendations from the core group of secretaries, headed by the Cabinet Secretary that no PSE be allowed to bid for other PSEs," Arun Shourie, Union Minister for Disinvestment, said here today on the sidelines of a function organised by the Indian Merchants Chamber (IMC) — Privatisation — a consensus in practice'.

"The other item is to prepare milestones for divestment in all the cases that we are working on. Once the calendar is approved by the Cabinet for divestment in the 15-20 companies, it is for the administrative ministries to adhere. This is the main item on the agenda," he said.

Responding to a query about the creation of a monopoly, the Minister said the question did not arise in the case of HPCL and BPCL sale as IOC already had a significant share in the market. On the proposed merger of BSNL and MTNL and the effect on their disinvestment, Mr. Shourie said they were not on the list and the Government had not taken a decision on it. Also, on the question of oil security, Mr. Shourie said already oil exploration and refining had been thrown open to the private sector and the real oil security was regarding the promotion of alternative fuels in India such as ethanol and bio-gas.

Mr. Shourie said several State governments had taken initiatives in the direction of disinvestment.

Mr. Shourie said the singular difference between China and India was that in the last 25 years, China had pursued with the reforms process whereas India has had only two short spurts.

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