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IPCL, HZL to be divested before March

Privatisation Minister Arun Shourie said on Friday four more state-owned firms would be sold before the end of the financial year in March, and declared the country's decade-long divestment drive had finally taken off.

"We have made significant advances in the last year," Shourie told reporters. "We will complete about four more (sales) before March 31."

The sales would include state-run Indian Petrochemicals Corp Ltd, Hindustan Zinc and government-owned hotels, he said.

He added that Hindustan Petroleum Corporation and Bharat Petroleum Corporation "will certainly be privatised in the coming financial year".

India's slow pace of privatisation abruptly shifted gear earlier this month when the government sold controlling stakes in overseas telecoms monopoly Videsh Sanchar Nigam Ltd and oil retailing firm IBP Co.

Shourie attributed the acceleration of India's privatisation programme partly to the fact that the government "didn't blink" in the face of fierce union and political opposition to the sale of aluminium company Balco last year.

"The unions got to know the determination of the government to persevere" with its privatisation programme.

Shourie said he expected the sell-off process to extend to the state level soon, adding that state governments were already consulting the central government about how to divest some of their assets.

He said privatisation would grow more popular with unions and employees alike as they saw the benefits, such as higher wages.

Government plans to raise Rs 120 billion through stake sales in 13 firms and has so far netted more than Rs 50 billion.

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