Sharp differences cropped up once again within the government over the divestment of the public sector undertakings in the oil sector as the Samata Party reiterated its stance of allowing the public sector units to bid for the strategic sale of Hindustan Petroleum Corporation Ltd.

Immediately after the government's decision to defer the divestment of Bharat Petroleum Corporation and HPCL on the ground that the opinion of Attorney-General Soli Sorabjee was yet to be obtained, there was palpable relief in many important quarters.

Defence Minister George Fernandes, who rushed back from Siachen is believed to have influenced the government's decision.

"Viable and profit-making PSUs should be allowed to bid," said Samata Party spokesman Shambhu Srivastava.

Sources in the government admit that Fernandes' statement on Thursday, insisting on allowing the PSUs to participate in the bidding, was deliberately designed to convey that the decision to debar the PSUs would not be taken kindly by the National Democratic Alliance convener.

Significantly, Fernandes drew his strength from the Sangh Parivar, which has been strongly advocating the participation of PSUs in the bidding.

Top Rashtriya Swaymsevak Sangh leaders have openly endorsed Fernandes's view that profit-making PSUs be allowed to bid in the strategic sale of HPCL.

This is also the view held by RSS-backed Swadeshi Jagran Manch, which initially opposed the disinvestment of the oil sector PSUs.

That Prime Minister Atal Bihari Vajpayee and Deputy Prime Minister L K Advani decided to defer the issue in today's meeting is illustrative of the eagerness of the government to accommodate the RSS's viewpoint on economic issues and not to rub the Parivar the wrong way with five state Assembly elections around the corner.

Sources in the government said the logic of obtaining the attorney-general's opinion on divestment of BPCL and HPCL was carefully crafted to save face.