Protest chorus as oil PSU sale official

Shourie announced the government’s decision to go ahead with the sale of equity in both companies in the Lok Sabha first and the Rajya Sabha later. He said that while the government had decided to sell the equity in HPCL to a strategic partner, the equity of BPCL would be sold to the public.

Shourie announced in the House that a fixed percentage of shares, to be decided later, would be kept for employees of HPCL and BPCL at a concessional rate of one-third of the market price. Shourie also said that the government would create a disinvestment proceeds fund for ‘‘modernization and upgradation of public sector enterprises, creation of new assets, generation of employment and retiring of public debt.’’

He also reiterated the government’s “commitment to utilisation of proceeds for social and infrastructure sectors.’’ He assured both houses that the government would ensure ‘‘divestment does not result in private monopolies.’’

Shourie said the government would dispose the residual holdings in the companies which have been divested to a strategic partner for which the Finance Ministry would work out the modalities for setting up an asset management company (AMC)— a concept originally floated by Adviser to the Finance Minister Vijay Kelkar.

Shourie later told medipersons that that the quantum of equity to be divested in the two corporations would be decided at the meeting of Cabinet Committee on Disinvestment, which would be held after Gujarat elections. He said that there was no legal hurdles in divestment of HPCL and BPCL as his ministry had examined all the issues.

Shourie’s statement in the Lok Sabha came amid stiff opposition leading to a walkout by Congress, Left parties and other members. Even in the Rajya Sabha, Shourie had to contend with stiff criticism from the Opposition benches. Congress and other opposition parties questioned government’s legal powers in disinvesting companies like BPCL and HPCL without seeking approval from the Parliament.

After Shourie had made his statement in the Rajya Sabha, for the second time during the day after the Lok Sabha in the early afternoon, Congress leader Manmohan Singh said the government was not empowered to change the ownership of the companies that had come to be owned by the government through an Act of Parliament. He said the government would have to seek amendment to those Acts for disinvesting the compamies like BPCL and HPCL.

However, Shourie said all the issues raised by Manmohan Singh and others would be addressed at the meeting of the CCD for which he would take further opinion of others, including the Law Ministry.

What came as a surprise was the stiff Opposition to the disinvestment policy announced by the government from the Samata Party, key allies of the BJP-led government. Prabhunath Singh and Raghunath Jha of the Samata Party and Mohan Ravale of the Shiv Sena were vociferous in their opposition of the policy on disinvestment in the oil sector.

Even as Shourie was addressing the Rajya Sabha, many members mainly from the Left parties were on their feet. Many of them were saying, ‘‘It’s all illegal.’’ The bedlam continued for some time.

Shourie was again interrupted by Manomhan Singh when he was giving examples of Air India and Maruti companies to press his point.

Singh read out the text of the specific Acts under which BPCL and HPCL has come into existence to point ouyt that there was a inherent clause that prohibited government from giving away the company.

Pranab Mukherjee asked Shourie to come to the Parliament with the opinion of the Attorney General of India on the legality of the issue.

As the chair ruled that ‘‘legality of the issue was not to be decided by the House but by a court of law,’’ members from CPI(M), CPI, RSP and RJD marched into the well of the House in protest. The House was adjourned soon after.