NEW
DELHI
CABINET
committee on disinvestment on Tuesday finalised transaction documents
for sale of Hindustan Zinc, 13 hotels of India Tourism Development Corporation
and Hotel Corporation of India. Financial bids for these would be invited
by next month.
In a meeting
on Tuesday, CCD finalised draft share holders and share purchase agreements
for 8 hotels of ITDC, 5 properties of HCI and sale of 26 per cent stake
in HZL.
"Progress
on disinvestment in identified PSUs (13) during the current financial
year is well on schedule," said disinvestment minister Arun Shourie.
A total
of 115 potential bidders, including 97 for ITDC, were identified for
the 13 hotels, he said, adding that "letters for these will start going
from tomorrow".
In deference
to suggestions made by the bidders, the government has decided to stagger
the price bids for ITDC over eight days and five days for HCI properties,
said Shourie.
While Hotel
Ashoka at Delhi and Bangalore would be given on renewable lease for
30 years, other properties of ITDC for which price bids would be invited
next month are in Agra, Madurai, Manali, Bodhgaya, Hasan and Mahablaipuram,
he said.
All the
properties of Hotel Corporation (HCI) except that in Srinagar would
be divested and the proceeds from these would be ploughed back into
Air India for strengthening the Maharaja.
Asked about
government's stand on Sterlite's participation in disinvestment process
after Securities Appellate Tribunal yesterday struck down market regulator
Sebi's order barring the company from accessing capital markets for
two years, Shourie said that the guidelines would be applied mechanically
on bidders.
"The guidelines
are very clear in security and non-security offences and we will apply
them mechanically. If they (bidder) get a stay or if any order gets
overturned, they will become eligible," said Shourie.
Shourie
said time-table for disinvestment was being adhered to in most of cases,
but added "in case of one or two PSUs such as Bharat Heavy Vessels and
Plates & Instrumentation Ltd, bidders have asked for more time leading
the milestone to be slipped by a week."
