Govt shorlists valuers for MUL divestment

ENS ECONOMIC BUREAU

NEW DELHI, OCT 18: In a move to kickstart the disinvestment process in Maruti Udyog Limited (MUL), the government has shortlisted six accountancy firms for appointment as valuers. The government would also engage a global advisor to facilitate the disinvestment of MUL.

Speaking at the Economic Editors Conference, heavy industry minister Manohar Joshi said “we have identified three Indian chartered accountancy firms from which to select one, besides two foreign chartered accountant firms out of three shortlisted”.

Joshi, initially reluctant to reveal the names of the shortlisted companies, finally relented after repeated requests from the media. The Indian firms shortlisted for appointment as a valuer are Bansi Mehta and Co, S B Billimoria and Co and C C Chowksi and Co, he said, adding the two foreign valuers would be selected from KPMG, Ernst and Young and Arthur Anderson.

Meanwhile, according to heavy industry secretary Ravindra Gupta, the government has rejected the VRS scheme for giants PSUs, mostly oil PSUs. Gupta said that the cabinet has rejected the proposal that offered 90-days pay package as part of an attractive VRS.

The current scheme of department of public enterprises offers 60 days salary for every year of service rendered or the years of service left, whichever is lower. The attractive VRS package for giant PSUs was reportedly initiated by two or three mega oil companies to trim their workforce. Reacting on other issues, Joshi said that the government would soon bring out a white paper on status of central public sector undertakings that come under heavy industries department. “We have finalised a white paper which would be a road-map for the activities of department”, Joshi said. He said the paper was ready and would soon be sent to the cabinet for its approval.