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Govt pursuing 31 divestment cases, says Shourie

The government is pursuing 31 cases of divestment and an amount of over Rs 51.14 billion has been realised from the privatisation of seven public sector undertakings, Divestment Minister Arun Shourie told the Lok Sabha on Friday.

The ministry has prepared time schedules for completion of divestment cases already cleared by the government and these were being submitted to the prime minister for approval, he said while replying to a calling attention motion moved by Bharatiya Janata Party MP Kirit Somaiya on the divestment issue.

On Maruti divestment issue, Shourie said in the second phase, the government will sell its existing shares in the company, adding, Suzuki Motor has agreed to underwrite the first tranche of about 3.6 million of these shares at Rs 2300 each.

Somaiya while congratulating the minister sought to know from him how the government proposed to meet the target of Rs 120 billion per year as receipts from divestment and how it proposed to spend the amount.

The BJP member's remarks drew loud protests from Opposition benches, which charged the government with selling out the country's precious assets.

They demanded that a full-fledged discussion be held in the House on the issue next week.

Shourie said the approach paper to the Tenth Plan prepared by the Planning Commission and approved by the government and National Development Council envisaged receipts of about Rs 160 billion every year from divestment.

Final estimates of resources required from this source are likely to be higher, he said.

"Even at this early stage, the benefits of strategic divestments are becoming evident," he said while citing the examples of sales of Modern Foods, which had almost doubled and production of Paradeep Phosphates, which is reported to have tripled.

Earning of workers of Modern Foods has increased by Rs 1600 per month and those of Paradeep Phosphates shot up by an average of 29 per cent, the minister said.

Giving a break-up of divestments completed since January this year, he said IBP had been divested of 33.58 per cent yielding Rs 11.57 billion, Videsh Sanchar Nigam (25 per cent) at Rs 14.39 billion, Paradeep Phosphate (74 per cent) at Rs 1.52 billion, Hind Zinc (26 per cent) at Rs 4.45 billion, IPCL (26 per cent) at Rs 14.91 billion, ITDC (nine hotels) at Rs 1.91 billion and HCI (three hotels) at Rs 2.52 billion.

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