‘Reforms at stake but I’m hopeful’

‘‘The difficulty is that in a fragile and fractured polity and legislature, squalls of this kind can make all the difference,’’ he said, in an apparent reference to statements made by Defence Minister George Fernandes calling for a rethink.

And the latest one by Union Minister Uma Bharati who questioned NALCO’s disinvestment claiming that the Orissa PSU was half-way through a major modernisation programme that would boost its valuation.

BJP spokesman Sunil Shastri, however, brushed aside Bharati’s opposition: ‘‘Whatever she (Bharati) has said is her personal view and not that of the party.’’ And reiterated that the BJP would continue to extend its support to the disinvestment process.

‘‘The current moment,’’ Shourie said, ‘‘has become a best opportunity for everybody to ambush… Earlier my friend Dhindsa did it, now Uma has made a statement against it.’’

But even as this controversy continues, Shourie said that the CCD would consider a proposal to debar public sector units (PSUs) from bidding for other PSUs.

If this proposal—likely to generate much heat and dust—is cleared, Indian Oil and ONGC will not be able to bid for HPCL and BPCL, clearing the way for privatisation of PSUs.

This proposal came from the Core Group of Secretaries, headed by the Cabinet Secretary, Shourie said. It was a mere proposal, he said, which could be agreed or disagreed upon.

Shourie said the CCD would also prepare milestones for divestment of 15 to 20 companies that figure on the Government’s list. Once this schedule is approved by the CCD, the administrative ministries would have to adhere to the decision. ‘‘This is the main item on the agenda,’’ he said, adding that BPCL and HPCL disinvestment would also find a mention in the meeting.

In the IBP disinvestment, Indian Oil—with a bid of more than double that of the second—bagged the company. As a result, critics argue that IBP remained in the same ministry with no change in management.

However, there’s a strong lobby which wants all eligible players—private or public—to be allowed to bid for PSUs. ONGC chairman Subir Raha has gone on record saying that ONGC is keen to bid for HPCL and BPCL.

Shourie said the question of a monopoly in the oil sector did not arise in the sale of HPCL and BPCL as Indian Oil already has a 55% share in the market.

Regarding the Centre’s proposal to merge MTNL with BSNL, Shourie said: ‘‘They are not on the divestment list at all. The government has not taken any decision on this.’’

On the HPCL, BPCL sale, he said: ‘‘My ministry will present our facts on and I am told that my colleague Ram Naik has a formidable presentation ready. He has good reasons for that. We will do our best…The Cabinet will meet and decide…Very often our proposals have been improved upon as in the case of IPCL by the then Finance Minister Yashwant Sinha.’’

If the CCD feels that there are other pressing matters to be addressed to instead of HPCL and BPCL, then ‘‘we shall do other things,’’ he said.

On his meeting with Fernandes on Wednesday, Shourie said he had a long discussion with the Samata Party president along with BJP spokesman Arun Jaitley on the need for HPCL, BPCL divestment.

‘‘We have presented our facts and Fernandes has given us a patient hearing. All three of us have also decided not to divulge details of the meeting in public,’’ Shourie said.

As for the party, officially the BJP has expressed full support to the disinvestment process but there are divisions. So while Shastri dismissed Bharati’s objection today, senior leader J P Mathur claimed that one could not ignore Fernandes’s objections in the wake of past experience during wars when private companies refused to heed government instructions to maintain adequate reserves of oil and diesel for defence requirements.