Public sector giants ONGC, BHEL and GAIL are among the companies short-listed for bidding for majority 51 per cent control of Engineers India Limited, Rajya Sabha was informed on Thursday.
"These public sector companies will be making a bid in this regard and they will be competing with others," Divestment Minister Arun Shourie said during Question Hour. Larsen and Toubro and other groups have also qualified as bidders, he said without naming others.
"Though I am not supposed to give out the names, you will be glad to know the names of the bidders who have qualified for bidding in EIL," he said.
While the government will have 29 per cent equity, EIL employees will have 10 per cent and financial institutions 4.3 per cent, he said, adding the public held about 5.1 per cent equity of EIL.
Shourie told members that the then government in 1996 had first referred the issue of dilution of shares in the consultancy public sector giant to the divestment commission.
When this was again discussed in 1998 it was felt there was a "cogent" reason for divestment by having a strategic partner in the company, he said.
Shourie said a decision has been taken to give 51 per cent strategic control to the successful bidder in EIL.
The minister told Mabel Rebello (Congress) that EIL is providing consultancy service to a large number of firms including petroleum companies on a turnkey basis.
