Signalling that its commitment to disinvestment over-rides political pressures, the Government today broke the logjam over the controversial sale of two oil PSUs by adopting a middle path.Highly placed sources told The Indian Express that at a key meeting of allies chaired by the Prime Minister at his residence, this was the ‘‘broad plan’’ decided: to put Hindustan Petroleum Corporation Limited (HPCL) up for bidding by both domestic and foreign firms. And to disinvest government equity in Bharat Petroleum Corporation Limited (BPCL) through a public issue.To sugar-coat this sale, sources said, it has been decided to provide safeguards for both HPCL and BPCL workers in the form of issuing a specific percentage—10 to 20—of shares to them. And creating a ‘‘disinvestment fund’’ from the share sale to take care of a ‘‘social safety net’’ for workers which includes re-training, re-deployment and welfare.Incidentally, the idea of a ‘‘disinvestment fund’’ for the welfare of workers was announced by Disinvestment Minister Arun Shourie in his reply to a Rajya Sabha debate yesterday.But today, Shourie declined to comment on the details. ‘‘The Prime Minister has directed me to make a statement in Parliament,’’ he said, adding that he would soon seek time from Lok Sabha Speaker Manohar Joshi and Rajya Sabha Chairman B S Shekhawat to make the statement.However, sources said today’s consensus is on a modified version of the formula floated by Finance Minister Jaswant Singh’s Advisor Vijay Kelkar who had proposed that HPCL be up for sale only to foreign bidders and BPCL through the public-issue route. Kelkar had argued that given the presence of Govt-owned IOC and private players like Reliance, this would ensure a level playing field and prevent any monopoly. His formula, however, has been fine-tuned after discussions between Defence Minister George Fernandes, Deputy Prime Minister L K Advani, Disinvestment Minister Arun Shourie and Petroleum Minister Ram Naik.All four Ministers were present at tonight’s hour-long meeting which was also attended by External Affairs Minister Yashwant Sinha and Jaswant Singh. Earlier, Kelkar, too, had briefed these Ministers.Disinvestment of both HPCL and BPCL has been hanging fire since September 7 when the Cabinet Committee on Disinvestment decided to defer a decision on share sale for three months in view of the differences on the mode of divestment.While Shourie had favoured a strategic sale of both firms, Naik had opted for public offers to raise funds so that both could build a refinery each.Fernandes was opposed the strategic sale of the two arguing that it could provide a route for private firms to create a monopoly in the strategic sector.The issue then became a political hot potato with the RSS and the swadeshi lobby jumping in to oppose the sale. And speculation that a decision would be deferred until after the Gujarat elections.
