New Delhi, Oct 5: Deviating from the recommendations of the erstwhile Disinvestment Commission, the department of disinvestment (DoD) has proposed 100 per cent strategic sale of Minerals & Metals Trading Corporation (MMTC). At the cabinet committee on disinvestment (CCD) meeting today, the DoD would also seek approval for divestment in IBP and 100 per cent strategic sale of State Trading Corporation (STC).The divestment panel had recommended "transfer of management control in MMTC to a private partner by disinvestment of 51 per cent of equity of MMTC through strategic sale." The DoD has decided to go beyond that and has proposed complete sale of government equity in MMTC.
In the case of STC, the DoD has accepted the sell-off panel's recommendation for the "disinvestment of entire GoI holding in STC to a strategic partner, after reserving 5 per cent share employees who opt for VRS."
According to official sources, the DoD proposal on IBP is also for strategic sale. This is in tune with the recommendations of the sell-off panel: "government may offer to the strategic buyer up to 33.9 per cent of the company's equity out of government holding of 59 per cent."
With divestment in IBP, the DoD intends to initiate privatisation in the oil sector. According to officials, the commencement of IBP divestment would dispel all doubts regarding oil sector privatisation.
It may be recalled that petroleum and natural gas minister Ram Naik had been insisting that the oil sector be granted "strategic status." A natural corollary of this position was that there would be no privatisation in the oil sector.
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