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Govt processing divestment proposal of 7 companies

The government is processing divestment proposal of seven companies referred to BIFR, although it's approval would ne needed before privatising these public sector undertakings, Divestment Minister Arun Shourie informed the Lok Sabha.

The proposals for divestment in these companies registered with BIFR as on March 31, 2000 - Hindustan Salts, Instrumentation Ltd, Nepa Ltd, Tyre Coproration India, Burn Standard Company, Braithwaite and Company and Jessop and Company, are being processed, he said.

Stating that the proposal for locating strategic partners in these cases was in the knowledge of BIFR, Shourie said that before divestment in these PSUs or subsidiaries, approval of BIFR would be needed.

On the issue of setting up of a fund with proceeds from divestment, Shourie said that the issue had been examined and current thinking of the government was not in favour of setting up such an exclusive fund.

He said that while no target had been fixed for divestment for the Tenth Five Year plan, the "Approach paper to the Tenth Five year Plan" envisaged a figure of Rs 780 billion from sale of government held equity in PSUs during 2002-07.

The minister said that receipts from divestment for this fiscal stood at Rs 2.11 billion as on December 13, 2001 as against a target of Rs 120 billion in 2001-02.

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