While the BJP leadership has been silent on the frontal attack by Arun Shourie, one senior leader has chosen to go after him. Ram Naik, head of the party disciplinary committee, has been quick to point out “what Shourie has done is gross indiscipline”. And there’s a reason why — both have been at loggerheads ever since they were ministers in the NDA government and the IBP was identified for strategic sale in June 2000.

Naik, then Petroleum Minister, suggested the sale of 33.69 per cent of government equity in IBP to public sector oil companies — Indian Oil Corp, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd — instead of routing it through open bids in order to retain the ministry’s hold on the smallest state-run petroleum marketing firm.

The Department of Disinvestment (DoD), which Shourie headed then, proposed that the share sale be through global bidding and IOC could be one of the bidders. When the qualifiers were framed, the DoD expanded the list of bidders by allowing not just those who had invested but also those who proposed to invest Rs 2,000 crore in exploration, refining or pipelines over 10 years.

Naik trumped him by fixing Rs 500 crore as bank guarantee from those proposing to invest — a step the DoD said would deter serious multinational bidders from participating.

February 5, 2002 saw Naik targeting Shourie again by arm-twisting IOC under his ministry to quote Rs 1,154 crore against the reserve price of Rs 337 crore. Second bidder Royal Dutch Shell quoted a price of Rs 595 crore.

... contd.