New Delhi, May 16: The government has allowed a one-year moratorium till April 20, 2004, to Dutch major SHV Energy for divesting 26 per cent stake in its downstream subsidiaries, provided the company sticks to a time-bound road map for divestment. As per entry level conditions imposed on the company, SHV Energy India Ltd was required to disinvest 26 per cent stake in SHV South East Private Ltd and SHV Infrastructure by April 20 this year but the company sought a moratorium citing several reasons for the delay, sources said here on Friday.
At its meeting on April 24, the Foreign Investment Promotion Board (FIPB) allowed the company one-year extension for implementing the 26 per cent disvestment, saying the proposal was "subject to adherence with the time-bound road map for divestment now submitted by the applicant".
In its application, SHV Energy India cited past losses, depressed stock markets and low investor interest as reasons to support its contention that it would be unable to locate a suitable strategic partner for the proposed divestment before April 20. Bureau Report