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MUMBAI, Oct. 4

THE Union Petroleum Minister, Mr Ram Naik, today insisted that he is not opposed to disinvestment, but that the issue pertains to the mode of disinvestment.

"The Government should decide whether sales will be through strategic sale or through IPOs," he said. However, Mr Naik was reluctant to state which mode of disinvestment he himself would prefer.

As if to underscore his stand on disinvestment, Mr Naik pointed out that out of the Rs 9,000 crore that has come by way of disinvestment this year, Rs 7,000 crore is from the oil sector.

"I am not against disinvestment," Mr Naik said at a press conference here today, after inaugurating the BPCL-IOC liquid cargo jetty at JN Port. He also said he was `not against disinvestment of public sector oil companies." The Minister has been reportedly resisting disinvestment in these companies.

"There is no change in my opinion on disinvestment," Mr Naik said. "But there are important points to be considered. Such as, whether loss-making units should be sold, whether profit-making companies and oil companies be disinvested at all... ," he said.

Speaking about the Mumbai High redevelopment plan initiated by Oil and Natural Gas Corporation Ltd, Mr Naik said the additional four per cent gas produced would be sold to seven major gas customers in Maharashtra including RCF, MSEB and Ispat.

Mumbai High redevelopment increased oil and gas production by 9 per cent and 4 per cent respectively, bringing in revenues worth Rs 1,400 crore, he said. By January 2003, it would be "compulsory" for oil marketing companies to sell petrol mixed with 5 per cent ethanol, Mr Naik said. "In the first phase this mix will be sold in 9 States. In the second, this will apply in the rest of the country, while the percentage of ethanol will be increased to 10 per cent," Mr Naik said. The Union Shipping Minister, Mr Ved Prakash Goyal, said the disinvestment of Shipping Corporation of India would go through as per schedule.

Reacting to a group of JNPT employees protesting against the privatisation of ports, Mr Goyal said: "In the case of SCI, the parties who are bidding are all Indians. The Government does not intend to disinvest to foreigners, as alleged by the unions."

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