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Oil sell-off impasse set to be resolved

BS Political Bureau in New Delhi

The government is expected to clinch the issue of divestment of the two oil sector public sector undertakings- Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd - on November 19, a day after the winter session of Parliament begins.

A high-level meeting of Deputy Prime Minister L K Advani with Defence Minister George Fernandes, Divestment Minister Arun Shourie and Petroleum Minister Ram Naik, has been called to resolve the issue that is seen as having become a millstone around the government's neck.

"The issue would have been clinched by now, but some of the ministers involved in the exercise were not in New Delhi," a top government functionary said, adding that Fernandes and Shourie were out much of the past week.

Official sources say the meeting is scheduled to be held on November 19, when all the ministers will be here.

Highly placed sources in the government say the formula of disinvesting one PSU through a strategic sale and the other through an initial public offering is the one likely to find favour. Finance Minister Jaswant Singh is supporting this formula.

At the political level, Advani has been entrusted with the task of "persuading" Fernandes to fall in line.

Though Fernandes has raised some objections to the "pace and procedures" of divestment, his resistance is not seen as a stumbling block.

"We will certainly take care of the issues raised by him," said a senior government functionary.

What appears crucial to the issue is the attitude of Ram Naik. After a series of meetings with Prime Minister Atal Bihari Vajpayee and Advani, Naik has mellowed.

Official sources said Advani might discuss the issue with Naik prior to the meeting on November 19 to pave the way for an amicable resolution.

Although the agenda for the November 19 meeting, which is not a meeting of the Cabinet Committee on Divestment, does not have Nalco on its agenda, there are indications that if a consensus is evolved at this meeting, the Nalco divestment can also be clinched in the same manner at a later date.

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