The Hindu : Govt invites bids for 34 p.c. stake in HPCL

Online edition of India's National Newspaper
Saturday, Feb 08, 2003

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Govt invites bids for 34 p.c. stake in HPCL

NEW DELHI FEB. 7. Kicking off the disinvestment process in the two oil PSEs, the Governent today invited initial bids for sale of 34 per cent stake in the oil marketing major Hindustan Petroleum Limited (HPCL).

The invitation of expression of interest for privatising HPCL by sale of Government equity to a strategic partner along with management control came a day after the Delhi High Court dismissed as withdrawan a petition challenging the decision to disinvest in the two oil PSEs.

The prospective bidders have been asked to submit their applications by March 17, officials said. The Government had decided on January 26 to divest 34.01 per cent equity in HPCL by taking a strategic partner while making a public offer in the case of another oil PSE BPCL for 35.02 per cent equity, after a protracted debate and obtaining a favourable legal opinion from Attorney General Soli Sorabjee.

Simultaneously, the Disinvestment Ministry would soon seek a meeting of the Inter-ministerial group on BPCL to work out details on the public offer, sources said.

As per the pre-eligibility criteria, the bidders either singular or in a consortium would have to have net worth of at least Rs. 2,500 crores to submit expression of interest for equity in HPCL. Further, in case of consortium, the net worth of only those partners would be taken into account who intend to have 10 per cent stake in the join bid. — PTI

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