Centre invites EoIs for joint ventures in four sick CPSEs

Written by fe Bureau | New Delhi | Updated: Jul 31 2009, 05:34am hrs
The government on Thursday said it has invited expressions of interest (EoIs) for joint venture (JV) in four sick central public sector enterprises, namely Nepa Ltd, Tungabhadra Steel Products Ltd, Triveni Structural Ltd and Hindustan Cables ltd. However, officials of the ministry of heavy industries and public enterprises said these are still early days, as the idea of creating a JV in some firms need parliament nod before EoIs could be floated.

The statement was made by Minister of State for Heavy Industries and Public Enterprises Arun Yadav in the Lok Sabha, who added that the JV route may have an impact on governments equity in these PSEs.

But senior officials of his ministry said the issue of JV in Nepa, for example, is only under consideration. A parliamentary panel has objected to disinvestment in Nepa Ltd and we have decided to go for a resolution. Till the time of passing of this resolution, how can we float EoIs one of the officials said.

In 2008, the Parliamentary Standing Committee on Industry had asked the government to withdraw the Nepa Limited (Disinvestment of Ownership) Bill, 2007, saying that the company may be crucial in reducing costly imports of newsprint. Before that, all the attempts of the government to rope in private partners for Nepa had failed. Yadav said that the government is examining disinvestment to revive the newsprint maker, sick since 1998. The possibility of revival of Nepa Ltd through the disinvestment route is under examination, he said.