Kickstarting its disinvestment-for-social-sector formula, the government approved the sale of 10 per cent of its equity in Bharat Heavy Electricals Ltd (BHEL). Including NTPC’s IPO last year, this is the second stake sale in a public sector unit by the UPA government. The amount raised—going by the present share price, around Rs 2,200 crore—will be transferred to the newly set up National Investment Fund. Fund managers will look after this corpus, spending 75 per cent of it on health and education, and the remaining on reviving sick Public Sector Undertakings (PSUs). Even though the government stressed that its stake in BHEL will not fall below the 51 per cent mark, the announcement has already run into Left trouble. Left leaders criticised the move and said that they had not been consulted. Briefing the media after the meeting of the Cabinet Committee on Economic Affairs, Finance Minister P Chidambaram said the ‘‘Left has been consulted in the matter.’’ Citing the national common minimum programme, Chidambaram said it had mandated that investment avenues must be found for retail investors and for reviving PSUs. The decision meets both the requirements, he said. Giving details of the disinvestment process, the FM said that the government’s 67.72 per cent stake in the Navratna will now come down by 10 per cent. ‘‘Even after disinvestment, the government will continue to hold 57.72 per cent and it will continue to be a government-owned company.’’ Assuring transparency, he said that the offer will be conducted through book-building route, and the stock of BHEL will be split in consultation with Department of Heavy Industry and the Department of Disinvestment. ‘‘This will enable wider public participation,’’ the FM said, while adding that 15 per cent of the 10 per cent (ie 1.5 per cent) of the shares will be reserved for BHEL employees. ‘‘This will enable small and retail investors to also get the prized share,’’ he added. Investment panel focuses on three mega projects The NTPC’s IPO was oversubscribed 12 times. Chidambaram expressed the hope that response to the BHEL issue will be as overwhelming as to the NTPC offer. Other stake sales in the works are Maruti Udyog (to sell the remaining 7.5 per cent stake) and Jessop (27 per cent stake sale). The government also has plans to disinvest in Shipping Corporation and Engineers India. IPOs are also being planned for two unlisted PSUs—Power Grid and Oil India Ltd.
