NEW DELHI, Nov 27: The government is proposing strategic sale of three public sector companies including Kudremukh Iron Ore Company (KIOCL), Bharat Aluminium Company (Balco) and Modern Foods during the last quarter of the current fiscal (January-March 1999).This would be in addition to the disinvestment of the Videsh Sanchar Nigam Limited (VSNL), Gas Authority of India Limited (GAIL) and Indian Oil Corporation (IOC). The disinvestment, which will include GDR issue, is also scheduled for the last quarter.An indication to this effect was given by cabinet secretary Prabhat Kumar while talking to newsmen here on Friday. According to Kumar, the exercise was being taken to mop up Rs 5000 crore from disinvestment, as mentioned in the 1998-99 budget. He also expressed the confidence that the government would be able to achieve the target.As far as VSNL was concerned, the government would go in for a GDR issue. Prabhat Kumar hoped that the response would be good as was in the previous GDR issue of thecompany. The core group has recently appointed Credit Suisse First Boston (CSFB) and Salomon Brothers as global coordinators for the VSNL issue.However, in case of Indian Oil, the government plans to confine the issue to the domestic market only.The government had so far managed to raise only about Rs 225 crore from disinvestment of equity in the Container Corporation of India (Concor). Concor shares were offloaded through the method of common book building in which Indian institutions and foreign institutional investors were allowed to participate. The cabinet secretary appeared satisfied with the response the Concor issue received from the capital market.Prabhat Kumar also pointed out that consultants have been appointed for strategic sale of KIOCL, Balco and Modern Foods. The government, he added, was in the process of appointing consultants for more identified PSUs. However, the process of strategic sale would begin in January so that the money could be realised within the current financial yearending March 31, 1999.The core group has given the mandate for strategic sale of Balco to Jardine Flemming. Investment banker Dresdner Kleinwort Benson has bagged the mandate for Kiocl, while the ANZ investment bank has been selected as consultant for Modern Foods. The core group has also appointed HSBC as consultant for Indian Tourism Development Corporation (ITDC) but not much progress has taken place on that front.
