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Privatised PSUs may go on hiring spree: Shourie

Employment can be expected to increase in the divested enterprises as they become more competitive and implement expansion plans, Divestment Minister Arun Shourie informed the Lok Sabha during Question Hour on Tuesday.

The government has taken measures to protect the interest of employees of divested companies, Shourie said in a written reply.

He pointed out that, necessary provisions have been made in the shareholders and share purchase agreements entered into with the strategic partner.

Divestment process on in 31 PSUs

Shourie further informed the House that divestment process is on in 31 PSUs including Air-India and Indian Airlines.

The proposed percentage of divestment is pegged at 60 per cent in Air-India and at 51 per cent in Indian Airlines, Shourie said in a written reply.

Other major corporations where the divestment process is on at present are Bharat Petroleum Corporation and Hindustan Petroleum Corporation, although the percentage of equity to be offloaded has not yet been finalised, he said.

In addition, Engineers India, Madras Fertilisers, Minerals and Metals Trading Corporation of India, National Fertilisers, Shipping Corporation of India and aluminium major Nalco are also amongst the 31 PSUs slated for divestment.

Shourie said strategic divestment beginning 1991-2000 has led to realisation of Rs 113.15 billion.

Significant amongst these are IBP where the realisations stood at Rs 11.54 billion, VSNL with total realisations of Rs 36.89 billion, Maruti Udyog with minimum amount of Rs 24.24 billion expected to be received in three tranches and IPCL at Rs 14.90 billion.

Sail

On Steel Authority of India, Shourie said the government has approved the proposal of Sail to divest Salem Steel Plant into a joint venture, as part of its financial and business restructuring. Sail has already initiated action for divestment of the plant and the process is continuing, Shourie added.

(With additional inputs from PTI)

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