(a) the names of Public Sector Undertakings proposed to be disinvested during the current financial year (2003-04);
(b) the progress and status of each of the PSUs to be disinvested during the said period;
(c) the financial position of such PSUs;
(d) the names/number of companies in the race for acquiring controlling stake of these PSUs, PSU-wise; and
(e) the manner in which the amount realized therefrom would be utilized?
THE MINISTER OF COMMUNICATIONS & INFORMATION TECHNOLOGY AND MINISTER OF DISINVESTMENT (ARUN SHOURIE)
(a) to (c): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF THE LOK SABHA STARRED QUESTION NO. 257 FOR
6.8.2003 REGARDING DISINVESTMENT OF PROFIT EARNING PSUs BY SHRI BASUDEB ACHARIA.
(a): All non-strategic Public Sector Undertakings (PSUs) whether they are profit making or
loss incurring are to be disinvested. The following industries have been identified as strategic
industries and therefore are not to be disinvested:-
(i) Arms and ammunitions and the allied items of defence equipment, defence air-crafts and warships;
(ii) Atomic energy (except in the areas related to the generation of nuclear power and applications of radiation and radio-isotopes to agriculture medicine and non-strategic industries);
(iii) Railway transport: Government has also decided that in the case of Indian Oil Company (IOC),
Oil and Natural Gas Company (ONGC) and Gas Authority of India Ltd. (GAIL) Government shareholding
would not be reduced below 51%. Oil India Ltd. (OIL) is also not to be disinvested. All other
non-strategic Public Sector Enterprises can be disinvested.
(b): During the period of 1991-92 to 1999-2000, Government had disinvested a minority stake in
39 Public Sector Undertakings (PSUs) through market sale of shares, out of which 4 PSUs were
subsequently disinvested through a process of Strategic Sale alongwith transfer of management
control to a Strategic Partner. In addition to these 4 PSUs, since 1999-2000, 7 PSUs, 19 hotel
properties of India Tourism Development Corporation (ITDC) and 3 hotel properties of Hotel
Corporation of India (HCI) were disinvested through the process of Strategic Sale. The details
of PSUs disinvested through Strategic Sale are at Annexure-I alongwith the names of the states
where they are registered.
(c): The list of PSUs which are being disinvested is at Annexure-II. Out of these 48 PSUs,
26 are profit making.
ANNEXURE-I
ANNEXURE-I REFERRED TO IN REPLY TO PART (B) OF THE LOK SABHA STARRED QUESTION NO. 257 FOR
6.8.2003 REGARDING DISINVESTMENT OF PROFIT EARNING PSUs BY SHRI BASUDEB ACHARIA.
Names of PSUs which have been disinvested through Strategic Sale since 1999-2000 till date.
Sl.No. Name State in which Registered Office is located
1 Modern Food Industries Limited (MFIL) New Delhi 2 Bharat Aluminium Company Limited New Delhi 3 CMC Andhra Pradesh 4 HTL Tamil Nadu 5 Lagan Jute Machinery Corporation West Bengal 6 IBP West Bengal 7 Videsh Sanchar Nigam Limited (VSNL) Maharashtra 8 Paradeep Phosphates Limited Orissa 9 Hindustan Zinc Limited (HZL) Rajasthan 10 Maruti Udyog Limited (MUL) New Delhi 11 Indian Petrochemicals Corporation Ltd. (IPCL) Gujarat 12 India Tourism Development Corporation (ITDC)-19 Hotels New Delhi 13 Hotel Corporation of India (HCL)-3 Hotels Maharashtra
Note-1: The following hotel properties of ITDC were disinvested; Agra Ashok, Bodhgaya Ashok, Hassan Ashok, TBABR Mamallapuram, Madurai Ashok, Bangalore Ashok, Qutab, New Delhi, Lodhi, New Delhi, LVPH, Udaipur, Manali Ashok,KABR Kovalam, Aurangabad Ashok, Airport Kolkata Ashok, Khajuraho Ashok, Varanasi Ashok, Kanishka, New Delhi, Indraprastha, New Delhi, Chandigarh Hotel project, and Ranjit, New Delhi.
Note-2: The following hotel properties of Hotel Corporation of India were disinvested; Centaur Hotel Juhu, Bombay, Indo Hokke Hotels Ltd., Rajgir and Centaur Hotel Airport, Mumbai.
Cases where disinvestment is in progress
I Strategic Sale
1 Hindustan Organic Chemicals Ltd. 2 National Fertilizer Ltd. 3 Balmer Lawrie and Co. Ltd. 4 Braithwaite & Co. 5 Burn Standard & Co. 6 Bharat Heavy Plates and Vessels Ltd. 7 Engineering Projects India Ltd. 8 Fertilizer & Chemicals Travancore Ltd. 9 Hindustan Copper Ltd. 10 Madras Fertilisers Ltd. 11 MECON Ltd. 12 MSTC Ltd. 13 National Aluminium Company Ltd. (Not being pursued at present) 14 National Instruments Ltd. 15 NEPA Ltd. 16 State Trading Corporation of India Ltd. 17 Shipping Corporation of India 18 Tyre Corporation of India 19 Tungabhadra Steel Products Ltd. 20 Engineers India Ltd. 21 Manganese Ore India Ltd. 22 Sponge Iron India Ltd. 23 Bharat Opthalmic Glass Ltd. 24 Instrumentation Ltd., Kota (Mother Unit) 25 Hindustan Paper Corporation Ltd. 26 Hotel Corporation of India Ltd.(HCI)
(i) Centaur Hotel Airport, Delhi (including Chefair Delhi)
(ii) Chefair Mumbai
27 India Tourism Development Corporation (ITDC)
(i) Hotel Samrat; New D3elhi (Lease-cum-management contract)
(ii) Hotel Jaipur Ashok
(iii) Hotel Patliputra Ashok
(iv) Hotel Kalinga Ashok
(v) Hotel Jammu Ashok
28 Central Inland Water Transport Corporation Ltd. 29 Hindustan Petroleum Corporation Ltd. 30 Rashtriya Chemicals & Fertilizers Ltd. 31 National Building Construction Corporation Ltd. 32 Mineral Exploration Corporation Ltd. 33 Hotel Neelchal Ashok, Puri 34 Hotel Lakeview Ashok, Bhopal 35 Hotel Ranchi Ashok, Ranchi 36 Hotel Brahmaputra Ashok, Guwahati 37 Hotel Pondicherry Ashok, Pondicherry 38 Hotel Donyi Polo Ashok, Itanagar 39 Hotel Punjab Ashok, Anandpur Sahib
II Through Offer for Sale
40 Bharat Petroleum Corporation Ltd. 41 Dredging Corporation of India Ltd.
III For residual shares of Government through Offer for Sale route
42 CMC Ltd. 43 Videsh Sanchar Nigam Ltd. (VSNL) 44 IBP Ltd. 45 Indian Petrochemicals Corporation Limited (IPCL) 46 Bharat Aluminium Co. Ltd. (BALCO)
IV Disinvestment completed but pending decision of Courts/BIFR
47 Jessop & Co. Ltd. 48 Instrumentation Control Valves Ltd. Palakkad
Note: Financial data is for 2001-02 except in the case of CMC, IBP and IPCL where 2002-03 results have been used. For VSNL data nine months ending December 2002 has been used.