Lok Sabha Question No. 4946 (UNSTARRED), answered on 2019-07-23
Subject: Privatization of PSUs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Ashok Kumar Rawat

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO.4946 TO BE ANSWERED ON THE 23 rd  July 2019

## Privatization of PSUs

## †4946. SHRI ASHOK KUMAR RAWAT:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the details of the Public Sector Undertakings under the Ministry privatised/disinvested, particularly in backward and rural areas, so far;
- (b) the amount received by the Government, undertaking-wise;
- (c) whether some irregularities have been reported in privatisation/ disinvestment of the undertakings and if so, the details thereof;
- (d)  whether  the  Government  has  taken/proposes  to  take  any  action  to  conduct  a detailed investigation in this regard;
- (e) if so, the details thereof; and
- (f) if not, the reasons therefor?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

- (a)  and  (b):  Two  PSUs  namely,  Hindustan  Organic  Chemicals  Limited  (HOCL)  and Indian Petrochemicals Corporation Limited (IPCL) were disinvested. Government held 59.95%  of  the  issued  paid-up  capital  of  IPCL  which  was  incorporated  in  1969. The Government referred IPCL along with other PSUs to the Disinvestment Commission in September,  1996.  The  Disinvestment  Commission  in  its  7 th Report,  of  March,  1998, classified IPCL as a non-core public sector undertaking and recommended disinvestment.  The recommendations of the Disinvestment Commission were considered and disinvestment was made as under:

| Date(s) on which shares disinvested   | To whom the shares were sold / transferred            |   %of shares | Amount received by the Government   |
|---------------------------------------|-------------------------------------------------------|--------------|-------------------------------------|
| June, 2002                            | Strategic Partner i.e. Reliance Petroinvestments Ltd. |        26    | Rs. 1490.84 crore                   |
| February, 2004                        | Public / Financial Institutions                       |        28.95 | Rs. 1202.85 crore                   |

| April, 2004   | Employees of IPCL                                                                                                                |   04.58 | Rs. 64.81 crore                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               | The Government of India was left with unsubscribed 10,40,604 shares of IPCL, due to non-response from the employees of the IPCL. |    0.42 | Under a scheme of amalgamation, IPCL was merged with Reliance Industries Limited (RIL) w.e.f. 05.09.2007. In terms of the said amalgamation scheme, 2,08,120 (face value of Rs.10 each) equity shares of the company (RIL) were allotted in view of the holding of 10,40,604 shares by the Government in the erstwhile IPCL. Subsequently due to allotment of Bonus shares, the GoI is now holding 8,32,480 shares in RIL. |

Hindustan  Organic  Chemicals  Limited  (HOCL)  was  disinvested  during  1992  to 1995 reducing Government of India equity shareholding holding to 58.78% and amount of Rs. 49.35 crore was realized from the disinvestment.

(c) to (f): No irregularities were reported in  the disinvestment of HOCL and IPCL.

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