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CGS disfavours jute corp, cotton corp sell-off
New Delhi, May 29: The core group of secretaries on disinvestment is understood to have disfavoured the disinvestment in jute corporation and cotton corporation while supporting privatisation of Mineral Exploration Corporation (MECL).
New Delhi, May 29: The core group of secretaries on disinvestment is understood to have disfavoured the disinvestment in jute corporation and cotton corporation while supporting privatisation of Mineral Exploration Corporation (MECL).
In its meeting held today, the group is also believed to have favoured partial disinvestment in dredging corporation through public offer of shares.
The meeting accepted the views of textiles ministry against proceeding with disinvestment of Jute Corporation and Cotton Corporation on the grounds that the corporations performed statutory functions, sources said.
It was of the view that privatisation would be futile as long as the two continued to perform price support operations.
In case of MECL, the Cabinet had decided in 2000, while approving a proposal to disinvest equity, to strengthen the company by allowing it to seek mining leases and prospecting licenses leaving the modalities to be worked out later.
Government currently holds 100 per cent stake in the exploration company.
On the issue of dredging corporation where government holds close to 98 per cent stake, the meeting decided to take up the issue of privatisation at a later stage while favouring small initial public offering.
Bureau Report
The meeting accepted the views of textiles ministry against proceeding with disinvestment of Jute Corporation and Cotton Corporation on the grounds that the corporations performed statutory functions, sources said.
It was of the view that privatisation would be futile as long as the two continued to perform price support operations.
In case of MECL, the Cabinet had decided in 2000, while approving a proposal to disinvest equity, to strengthen the company by allowing it to seek mining leases and prospecting licenses leaving the modalities to be worked out later.
Government currently holds 100 per cent stake in the exploration company.
On the issue of dredging corporation where government holds close to 98 per cent stake, the meeting decided to take up the issue of privatisation at a later stage while favouring small initial public offering.
Bureau Report