Kolkata: The Union Minister for Petroleum and Natural Gas Ram Naik on March 8 said the character of two oil companies earmarked for privatisation, Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), would be retained till the issue was discussed in the Lok Sabha during the Budget session.

Speaking at the inaugural session of the second world conference of oil, gas and refinery trade unions, Naik said the two companies will not be disinvested till the Budget session was over.

Earlier, Disinvestment Minister Arun Shourie was of the view that both companies should be sold through the strategic route.

However, stiff opposition from Naik on strategic sale forced the government to sell HPCL to a partner and dilute BPCL's equity through an initial public offering (IPO).

Naik said the 12 oil public sector units (PSUs), out of which five were 'Navratnas' and six 'Miniratnas', were contributing more than 65 per cent of the total profit of all the 240 public sector units in the country.

Naik, who was commenting on the oil PSU disinvestment issue raised by the Centre of Indian Trade Union (CITU) vice-president Jyoti Basu said oil companies in the country were excellent with levels of efficiency.

Basu had said privatisation of oil companies would allow unbridled entry of foreign multi national companies (MNCs).

In this context, he urged the oil trade unions to help in the development of the industry, while coping with competition in the new era.

PTI