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New Delhi , Dec. 15

SHIPPING Corporation of India (SCI) and Hindustan Copper Ltd were "partially" created by Acts of Parliament, the Government admitted on Monday, amidst a growing debate on whether entities acquired through Acts of Parliament could be privatised without prior approval from the lawmakers.

Both SCI and Hindustan Copper are listed for privatisation through the strategic sale route; the disinvestment process in these two companies have been put on hold by the Government along with several other PSUs until the Supreme Court clarified its September 16 order halting privatisation of HPCL and BPCL for want of Parliamentary clearance.

The apex court had ruled that HPCL and BPCL were created through relevant Acts of Parliament and, hence, a decision to disinvest/privatise these entities would require the approval of Parliament.

Interpreting the Supreme Court order, the employees unions of SCI and HCL had moved court, arguing that the privatisation of these companies should be carried out only with the approval of Parliament.

In the case of SCI, the erstwhile Jayanti Shipping Company was acquired through The Jayanti Shipping Company (Acquisition of Shares) Act, 1971, while Mogul Line Ltd was acquired through The Mogul Line Ltd (Acquisition of Shares) Act, 1984. Both Jayanti Shipping and Mogul Line were subsequently merged with SCI.

In the case of Hindustan Copper, the erstwhile Indian Copper Corporation Ltd was acquired through the Indian Copper Corporation (Acquisition of Undertakings) Act, 1972, and this was later merged with Hindustan Copper.

In a written reply in the Rajya Sabha, the Minister of State for Communications and Information Technology, Mr Thirunavukkarasar, said both SCI and Hindustan Copper were "partially" created through Acts of Parliament in this manner. "In the case of SCI, Hindustan Copper and Bharat Aluminium Co Ltd (a privatised PSU), units acquired through an Act of Parliament were merged with the PSU," he told Mr A. Vijayaraghavan and Dr Dasari Narayana Rao.

According to the Minister, four PSUs were fully acquired through Acts of Parliament. These include HPCL (The Esso Acquisition of Undertakings in India Act, 1974), BPCL (Acquisition of Shares of Caltex Oil Refining India Ltd Ordinance, 1976, which was made an Act in 1977), Braithwaite & Co (Braithwaite & Co India Ltd Acquisition and Transfer of Undertaking Act, 1976), and Burn Standard & Co (Burn Company and Indian Standard Wagon Company Nationalisation Act, 1976).

Mr Thirunavukkarasar said the Government was "apprehensive" of meeting the disinvestment target for the fiscal in the face of serious constraints arising as a fall out of the Supreme Court judgment on HPCL and BPCL.

The budgeted receipts from disinvestment during 2003-04 is Rs 13,200 crore against which the actual realisation till end-November was Rs 1,335.40 crore. "The Government is continuing its efforts to maximise the realisation from disinvestment," he informed the House.

The Supreme Court is expected to clarify its earlier ruling on HPCL and BPCL in the first week of January 2004.

Meanwhile, the Government has stated that the proposal of Twinstar Holdings Ltd, Mauritius, to hike its shareholding in Sterlite Industries (India) Ltd "does not attract the provisions of the Shareholders Agreement" signed between the Government and Sterlite for the privatisation of Balco.

The Government had sold 51 per cent of its equity in Balco to Sterlite. As per the Shareholders Agreement signed at the time of privatisation, Sterlite is barred from transferring these shares for a period of three years from the date of disinvestment.

"Since Balco will continue to be controlled and managed by Sterlite, the proposal of Twinstar does not attract the provisions of the Shareholders Agreement," Mr Thirunavukkarasar informed the Rajya Sabha in a written reply.

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