HPCL, BPCL sale: How Govt won over its swadeshi lobby

SJM National convenor Murlidhar Rao said today; ‘‘These (disinvestment of HPCL and BPCL) are positive signals which are a deviation from the past and we hope the same spirit will continue.’’

The compromise formula was accepted by the opponents mainly on the three grounds: first it was accepted by the disinvestment ministry that in the future, nodal ministries of the PSUs would be taken into confidence. In other words, Ram Naik and Uma Bharti would have a say in the divestment process, thus protecting their turf.

Second, oil PSUs would be allowed to participate in the strategic sale of HPCL, and it’s expected that ONGC will bid aggressively for HPCL.

Finally, what clinched the compromise formula was the public offer route for BPCL’s disinvestment.

With the ball rolling on the disinvestment front, top Ministry officials gathered at Disinvestment Minister Arun Shourie’s office today despite it being a holiday. Secretary Pradeep Baijal along with three joint secretaries in the ministry spent almost an hour with Shourie to decide on the contents of the statement the Minister is scheduled to make in Parliament next week.

The Ministry is expected to hold the meeting of core group of Secretaries after December 11, post Gujarat elections, followed by a meeting of Cabinet Committee on Disinvestment (CCD).

In the CCD meeting, Shourie is likely to take up the proposal on the amount of HPCL equity to offer for sale and also to clear the way for seeking presentation from bidders for becoming global advisors for the sell-off.