New Delhi: The government on December 9 announced in the Lok Sabha that Hindustan Petroleum Corporation Limited (HPCL) would be privatised through sale of equity to a strategic partner and Bharat Petroleum Corporation Limited (BPCL) through public offer.

Making a suo motu statement in the House amidst stiff opposition from Congress, Left and other parties leading to a walkout, Disinvestment Minister Arun Shourie said government has taken a decision to "disinvest in HPCL through strategic sale".

The decision, taken at a meeting held by Prime Minister Atal Bihari Vajpayee on December 6, also entails disinvestments "through sale of shares to the public in BPCL", thus ending months-long controversy over divestment in oil PSUs that virtually stalled the entire sell-off process.

Shourie also announced that employees would be given a specified percentage of equity in the two oil PSUs at a concessional one third price.

Aimed at fine tuning the disinvestment process, Shourie said, "Government would continue to ensure that disinvestment does not result in alienation of national assets, which, through process of disinvestment, remain where they are. It will also ensure that disinvestment does not result in private monopolies."

He said a Disinvestment Fund would be set up for "financing fresh employment opportunities and investment, and for retirement of public debt".

The Finance Ministry would also present a paper to the Cabinet Committee on Disinvestment for setting up an asset management company for sale of residual holding of the government in the companies where government has divested equity to a strategic partner, the Minister said.

PTI