(a) whether Government have cleared certain Public Sector undertakings for disinvestment ;
(b) if so, the details thereof, undertaking-wise, including the terms and conditions, process of selection of strategic partners, offer of equity to employees etc ; and (
(c) the expected earnings therefrom?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE DEPARTMENT OF DISINVESTMENT, MINISTER OF STATE IN THE MINISTRIES OF PLANNING, STATISTICS & PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE DEPARTMENT OF ADMINISTRATIVE REFORMS AND PUBLIC GRIEVANCES (SHRI ARUN SHOURIE)
(a) & (b) The process of disinvestment is currently in progress in the following PSUs:-
Air India, CMC Ltd, Hindustan Copper Ltd. (Phase I), Hindustan Insecticides Ltd., Hindustan Organic Chemicals Ltd., Hindustan Zinc Ltd., Indian Airlines, IBP Ltd., Indian Petrochemicals Corpn Ltd., Properties of Indian Tourism Development Corpn. Ltd., Madras Fertilizers Ltd., Minerals and Metals Trading Corporation Ltd., National Fertilizers Ltd., Paradeep Phosphates Ltd., Sponge Iron India Ltd., State Trading Corpn. Ltd., Hindustan Cables Ltd., Instrumentation Ltd., Jessop and Co. Ltd., NEPA Ltd., Tungabhadra Steel Products Ltd., Videsh Sanchar Nigam Ltd., Bharat Brakes and Valves Ltd., HTL, NIDC, Bharat Heavy Plates & Vessels, Hindustan Salts and Engineering Projects (India) Ltd.
The percentage of disinvestment and mode of disinvestment contemplated in these PSUs are given in Annexure-I. Typically, the process of disinvestment through strategic sale method involves the procedure detailed of Annexure-II
(c). The amount realizable from disinvestment would depend on factors like market conditions, financial performance of the companies under consideration, terms and conditions of sale, interest of bidders, attractiveness of the company and its future prospects. Finally, the process involves competitive bidding by different bidders. Thus, it is not possible to precisely estimate the receipts from disinvestment.
Annexure-I
LIST OF PSUs/SUBSIDIARIES IN WHICH STRATEGIC DISINVESTMENT IS EXPECTED TO BE COMPLETED DURING 2001-2002 WITH PERCENTAGE OF PROPOSED DISINVESTMENT OF EQUITY
S.No. Name of the PSE Present Govt. shareholding/ Proposed disinvestment equity - % Percentage.
1. Air India Ltd. (IA) 100 60
2. Bharat Brakes and Valves Ltd. (BBVL) Subsidiary of Bharat @ Bhari Udyog Nigam Ltd. (BBUNL)
3. Bharat Heavy Plates and Vessels Ltd. Subsidiary of Bharat @ Yantra NigamLtd.
4. Computer Maintenance Corporation Ltd. 83.31 57.31
5. Engineering Project (India)Ltd. 97.75 74 6. Hindustan Cables Ltd. (HCL) 98.96 @
7 Hindustan Copper Ltd. (HCL)-Phase I 98.76 $$
8. Hindustan Insecticides Ltd. (HIL) 100 +Since 51closed+
9. Hindustan Organic Chemicals Ltd.(HOCL) 58.61 32.61 10.. Hindustan Salts Ltd. 100 @ 11. Hindustan Zinc Ltd. (HZL) 75.92 26 12.. HTL 100 74 13. Indian Airlines Ltd. (IA) 100 51 14 Indian Petrochemicals Corporation Ltd. 59.75 25 15. Indian Tourism Development Corporation Ltd. (ITDC) 89.97Handing over the hotels located in prime locations to established hotel chains to run on long term structured contract on lease cum management basis. The hotels in other locations may be demerged into separate companies To sell 100%$ 16. IBP Ltd. 59.59 33.58 17. Instrumentation Ltd. 100 @ 18 Jessop & Co. Ltd. (JCL) Subsidiary of Bharat Bhari Udyog Nigam Ltd. (BBUNL) @ 19. Madras Fertilizers Ltd. (MFL) 59.15 32.74 20. Minerals and Metal Trading Corporation of India Ltd. (MMTC) - 99.34 To reduce the Government`s shareholding to 26%. 21. National Fertilizers Ltd. (NFL) 97.65 51 22. NEPA Ltd. 96.31 @ 23 National Industrial Development Corporation (NIDC) 100 @ 24. Paradeep Phosphates Ltd. (PPL) 100 @ 25. Sponge Iron India Ltd. (SIIL) 97.45 (balance of equity by Govt. of A.P.) 100 26. State Trading Corporation (STC) 91.03 To reduce the Government`s shareholding to 26% 27. Tungbhadra Steel Products Ltd. (TSPL) Subsidiary of Bharat Yantra Nigam Ltd. @ 28. Videsh Sanchar Nigam Ltd. (VSNL) 52.97 26.97
@ Scouting for joint venture formation for up to 74% equity. $ Disinvestment of individual hotels/properties through various modes of Disinvestments. $$ No decision on percentage of disinvestment has been taken. $$ Phase -I. To restructure HCL by hiving of Khetri Unit and the Taloja Plant into a new company with HCL`s equity in the new company to 49%, the balance 51% being that of the Strategic Partner. Phase II to be taken up after phase I.