The Hindu Business Line : Gujarat Govt may divest in Gujarat Chemical Port Terminal

Ahmedabad March 20 The Gujarat Government may offload in the near future the 58 per cent equity held by its six public sector undertakings (PSUs) in Gujarat Chemical Port Terminal Company Ltd (GCPTCL), an unlisted company.

"Yes, the issue is under study but it is difficult to say when a decision will be taken," Mr Saurabh Dalal, Minister of State for Finance, Energy and Petrochemicals, told Business Line over phone from Gandhinagar on Monday. According to company sources, the equity structure of GCPTCL assumes importance in the wake of Indian Petrochemicals Corporation Ltd's (IPCL) proposed merger with Reliance Industries Ltd announced last week.

IPCL, which earlier had 22 per cent equity, had later increased it by another 20 per cent. With 42 per cent equity in GCPTCL, it is the largest stakeholder in the company. In the event of the State Government deciding to offload the PSUs' stake, RIL may emerge as owner of GCPTCL as well if it chooses to pick up the stake sold by the Gujarat government companies.

GCPTCL's remaining 58 per cent shares are held by Gujarat Maritime Board, Gujarat Narmada Valley Fertilizers Company Ltd, Gujarat Alkalis and Chemicals Ltd, Gujarat State Fertilizers and Chemicals Ltd, Gujarat Industrial Investment Corporation Ltd and Gujarat Industrial Development Corporation Ltd. A top official of one of these corporations told Business Line on condition of anonymity that "an indication was given by the State Government recently about offloading the PSUs' equity. But no decision seems to have been taken so far."

Gujarat Chemical Port Terminal Company was promoted by the six PSUs and IPCL in the 1990s as a joint venture to make the State a hub for chemicals and petrochemicals by developing a commercial, latest port and storage terminal for handling hazardous chemicals, including liquid and gaseous ones.

It has a jetty at Dahej in Bharuch district, at the estuary of the Narmada River, capable of berthing ships of 6,000 to 60,000 DWT with an initial capacity of storage terminal of 3-lakh cubic metres. Plans are afoot for construction of a second jetty for handling larger ships and providing additional storage capacity. The company has accumulated losses over the years the exact extent of which could not be ascertained.

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