PRESS RELEASE (10.7.2003)

GOVERNMENT TO OFF LOAD BALANCE EQUITY HOLDINGS IN SELECTED DISINVESTED PSUS

Government has so far undertaken strategic sale in several PSUs, both listed as well as unlisted.  The listed companies in which disinvestment through strategic sale has taken place are CMC, IBP, Hindustan Zinc Limited (HZL), Indian Petrochemicals Corporation Limited (IPCL) and Videsh Sanchar Nigam Limited (VSNL).  The unlisted companies are BALCO, Modern Food India Limited (MFIL), HTL, Paradeep Phosphates Limited (PPL), and the demerged hotels of ITDC/HCI.  In addition, Government has disinvested part of its equity holding in Maruti Udyog Limited (MUL) through the ‘offer for sale’ route in the capital market. 

Barring MFIL, where Government has sold its balance equity of 26% to the Strategic Partner utilizing the ‘put option’ and the ITDC/HCI hotel cases in which Government sold 100% of its equity holding, Government has residual equity shareholding in all the nine other companies mentioned above including MUL. 

CCD today approved the proposals for disposal of residual Government equity in CMC, IPCL, VSNL, IBP and BALCO through the ‘Offer for Sale’ route.  CCD also approved the proposals to appoint Advisors for the purpose.

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