Divestment panel for outright sale of MFIL

The Disinvestment Commission has recommended that the public sector divestment programme should be kicked off with an outright sale of Modern Food Industries Ltd (MFIL) and partial offloading of the Government’s equity holding in Gas Authority of India Ltd and India Tourism Development Corporation (ITDC). The commission has also classified the 40 public sector undertakings (PSUs) referred to it by the Government into core units where a maximum of 49 per cent disinvestment would be allowed and non-core units where it could go up to 74 per cent.

BSES may drop TIDCO projects

The Mumbai-based power utility BSES Ltd, which had emerged as the lowest bidder in two power projects being set up by the Tamil Nadu Industrial Development Corporation (TIDCO), may drop out of these projects. This follows a dispute with TIDCO regarding the per unit cost of the liquid fuel power plants. In the financial bids which were opened last month, BSES, quoting Rs. 2.64 per unit for Chengalpattu-I and Perundurai, emerged as the lowest bidder for these projects. However, early this month, TIDCO officials told the company to reduce the tariff to Rs. 2.25, saying that it was the benchmark price.

HPCL, Saudi Aramco to upgrade venture

The investment figure for the Hindustan Petroleum Corporation Ltd-Saudi Aramco joint venture refinery complex is likely to be upgraded from Rs. 7,000 crores to about Rs. 11,000 crores. Company officials say that the combine is now considering going in for a 9-10 MMTPA refinery as against the originally envisaged 6 MMTPA. The joint venture proposal, finalised last year, mooted construction of a 6 MMTPA grassroots refinery near Bhatinda, a pipeline extending from Kandla to Bhatinda for transportation of crude and a 500 MW power project.