The setting up of a special purpose vehicle (SPV) by a consortium of domestic financial institutions and banks exclusively for the divestment of PSU equity has been mooted by advisors to the Government on PSU divestment. At the last round of discussions between the Ministry of Finance and three major merchant banks on PSU disinvestment, one of the proposals which came up was on the setting up of an SPV. It envisages the Government unloading the stock of public sector undertaking which it controls to the new company. The SPV will then put the offer through at a fixed price at an appropriate time.
RIL bidding puts DoT in a quandary
Reliance Industries Ltd (RIL) has put the Department of Telecommunications (DoT) in a fix by bidding for a maximum number of telecom circles in the cellular and the basic telecom service tenders opened recently. As of now, Reliance Telecom stands to win at least seven circles in the cellular and six in the basic service tenders, if it passes technical evaluation. RIL is the only bidder for six less-revenue yielding circles.This would make the DoT allot a maximum number of circles to a single bidder, which leads to controversy.
IA sets conditions for conciliation by Mody
The Indian Airlines management has outlined its conditions before the pilots’ union for acceding to the letter’s request to urge the airlines Chairman, Mr. Russi Mody, to conciliate. The Indian Airlines MD, Mr. P. C. Sen, has said Mr. Mody’s conciliation would be formally sought only if both sides agree that his interpretation of the contentious issues would be regarded as final and binding by both the parties.