Financial Daily from THE HINDU group of publications
Friday, Feb 07, 2003
Financial Daily from THE HINDU group of publications Friday, Feb 07, 2003 |
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Petroleum Industry & Economy - Disinvestment HC dismisses plea against oil PSUs' sale Our Bureau
NEW DELHI, Feb. 6 THE Delhi High Court on Thursday dismissed a petition filed by the Federation of All-India Petroleum Traders challenging the Union Government's decision to sell stakes in oil PSUs — HPCL and BPCL. A Division Bench comprising Ms Justice Usha Mehra and Mr Justice Pradeep Nandrajoke dismissed the petition as withdrawn in view of the Supreme Court verdict on privatisation of profit-making BALCO. The Division Bench observed that the petition was not maintainable as the questions raised in the petition were identical to those in the BALCO case. "The Court is bound by the Apex Court verdict in the BALCO case", the Bench said. The Government was represented at the hearing by the Solicitor General, Mr Kirit Rawal, and Mr Naveen Chawla while Mr Arun Maitri appeared for the petitioner. The federation had questioned the Government's decision to disinvest equity in HPCL and BPCL contending that it was done without consulting Parliament and the views of the Disinvestment Commission was not taken. Anticipating legal hurdles in the way of sale of equity, the Disinvestment Ministry had last week filed caveats in the Supreme Court and in the high courts of Mumbai, Kolkata and Chennai. Meanwhile, the Ministry has called merchant bankers for making presentations from February 17 for appointment as advisors for the strategic sale of HPCL. The presentation by merchant bankers would flag-off the privatisation process in HPCL, which is expected to be completed in 6 to 8 months, the Ministry officials said. More than a dozen merchant bankers are in the race for appointment as advisors for HPCL sale, they added. Officials also said that the Foreign Investment Promotion Board (FIPB) had given an in-principle nod to the Disinvestment Ministry for allowing FIIs, NRIs and OCBs to participate in the proposed public offer of Government equity in Maruti Udyog Ltd (MUL). " The FIPB has granted an in-principle nod in this regard ", officials said. The Government will sell 25 per cent of its residual equity in MUL through a domestic issue having an international platform. Suzuki Motor Corporation, the majority stakeholder in the joint venture carmaker, has agreed to underwrite the first public offering at Rs 2,300 per share.
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