New Delhi, September 7
Bowing down to pressure from with in the NDA coalition, the Centre today decided to defer by three months the controversial proposal to disinvest in state-owned oil refining companies — the HPCL and the BPCL.
The decision of the government comes amidst strong reservations expressed by Defence Minister and NDA convener George Fernandes and Petroleum Minister Ram Naik, both of whom had vociferously argued against offloading government stake in the oil companies citing security and strategic concerns.
“The decision on proposed privatisation of the HPCL and the BPCL has been deferred by three months”, Disinvestment Minister Arun Shourie told newspersons after the Cabinet Committee on Disinvestment (CCD) meeting here.
Mr Shourie said the decision was taken during the meeting which was convened by the Prime Minister prior to the CCD which lasted for more than two hours.
On being asked whether the decision to defer disinvestment in the BPCL and the HPCL would affect the targets set for this fiscal year, Mr Shourie replied in the affirmative.
He also said all other decisions on private placement for raising funds for the IOC, Gail and other oil
companies had been deferred for the time being as the government wanted to take an integrated view.
He indicated that the decision could affect the entire programme of
disinvestment on oil sector PSUs. “ It is more about whether to disinvest in these companies than the mode of disinvestment”, he said.
The CCD, which met in the evening today, formally ratified the decision taken by an informal meeting convened by the Prime Minister Atal Behari Vajpayee earlier in the day.
The meeting, chaired by the Prime Minister and attended by the Disinvestment Minister Arun Shourie, Defence Minister George Fernandes, Deputy Prime Minister L.K. Advani, Petroleum
Minister Ram Naik and Finance Minister Jaswant Singh, is learnt to have to failed to reach a consensus of the contentious issue.
Mr Naik, who returned from Brazil today after attending the World Petroleum Congress, is understood to have made a detailed presentation spanning for more than 20 minutes arguing against the privatisation of the HPCL and the BPCL.
Following the presentation, sources said, the Prime Minister is understood to have told his senior Cabinet colleagues to agree upon a deferment of the issue for three months for reviewing various aspects. The run-up to the crucial CCD meeting has been powered with arguments for and against disinvesting government stake in the HPCL and the BPCL.
