Govt pulled up for disinvesting in IPCL sans revaluation

Govt pulled up for disinvesting in IPCL sans revaluation
PRESS TRUST OF INDIA

NOV 26: "The Committee is not convinced with the reply of the Government and finds no logic in the contention that revaluation of the assets is likely to have a direct bearing on the ongoing exercise of disinvestment," the Standing Committee on Petroleum and Chemicals said in its 8th report.

While examining the issue of disinvestment in several public sector undertakings, the Committee had also expressed concern over the decision of disinvestment of Hindustan Organics and Chemicals Ltd (HOCL) and Hindustan Insecticides Ltd (HIL) without revaluation of assets.

The Committee had strongly recommended that before initiating any exercise for disinvestment, revaluation of assets should be made essential. "Revaluation of assets was an ongoing process and did not require any clearance from any quarter," it said.

However, the government in its reply said that the determination of the replacement cost and revaluation of the assets of IPCL, HOCL and HIL is likely to have direct bearing on the ongoing exercise of their disinvestment.

Rejecting the Government's contention, the Committee said valuation of assets is a continuous and regular exercise and has no link up with the disinvestment process.

It said the Department of Chemicals and Petrochemicals under the Ministry of Chemicals and Fertiliser should initiate the exercise of revaluation of assets falling under its administrative control.

The Government had stated that the department had sought comments of the Department of Disinvestment (DoD), the nodal department entrusted with all matters related to disinvestment of Government equity in Central Public Sector Enterprises.

"The question of valuation of assets is to be decided on a case-to-case basis. In the case of IPCL, HOCL and HIL, the decision of the appropriate authority has yet to be taken," the Government had said.