New Delhi, April 3
The government today allowed Reliance Industries to bid for controlling stake in the Indian Petrochemical Corporation Limited and modified the pricing formula of gas to be supplied to the public sector company after privatisation, clearing decks for its disinvestment.

A sub-group of the Cabinet Committee of Disinvestment decided not to bar the Reliance Group from bidding for IPCL shares as the analysis of the charge sheet clearly reflected that the company posed no security threat to the country, Disinvestment Minister Arun Shourie told reporters here this evening.

The ministry said Reliance would not be disqualified from bidding for public sector undertakings (PSUs), including IPCL, on the basis of the charges filed by the CBI under the Official Secrets Act.

“We have examined the matter. Reliance will not be disqualified as the charges against it do not relate to national security. As per guidelines for disinvestment, in the case of non-security related matters, a charge sheet is not enough to disqualify the bidder,” Mr Arun Shourie said.

“If the charges relate to security, then a charge sheet is enough, but in non-security related matters, conviction by court is necessary for disqualification,” he said.

The CCD sub-group decision assumes significance in view of the fact that the government had decided to disinvest shares in the public sector company in favour of a strategic partner. The government is expected to invite bid for IPCL towards the end of next month and the privatisation process is likely to be completed within a month.

The Reliance Group and the Indian Oil Corporation are considered serious buyers for IPCL.

The minister said Reliance had been charged under the Official Secrets Act for possessing documents pertaining to classification of excise duty rates, India’s response to economic sanctions and the government’s view on monopoly clause in disinvestment.

Reliance officials had been charged under Sections 5(2) and 5(4) for possession of secret official documents and not under Section 5(3) pertaining to espionage and passing on of national secrets to the enemy, Shourie said.