HPCL staff may block due diligence

Even though petroleum minister Ram Naik met the representatives of the oil unions and advised them to show restrain in their decisions to go...

Even though petroleum minister Ram Naik met the representatives of the oil unions and advised them to show restrain in their decisions to go on strike against the proposed disinvestment of HPCL and BPCL, HPCL staff on Wednesday threatened to even block the due diligence of HPCL.

After meeting Naik, Ashok Singh of HPCL management staff association said “we will not allow global advisors to come near our company. We will do everthing possible to block the due diligence process.”

align="center" class="linkwht">Oil PSUs sell-off challenged in HC

NEW DELHI: Even before the divestment process could take off in two oil PSUs — HPCL and BPCL — a petition challenging the government’s decision was filed on Wednesday before the Delhi High Court on the ground that the Parliament was bypassed and views of the Disinvestment Commission were not obtained. The petition filed by Federation of All India Petroleum Traders (FAIPT) also contends that government had not considered the issue of national interest while taking the decision, where it had adopted a dual policy in the case of two profit making corporations. The petition is likely to be listed for hearing on Thursday.

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The petition alleged that the government has not divulged the reasons for going ahead with the disinvestment of these two blue chip oil companies. Claiming that there was no necessity for disinvestment of HPCL and BPCL, the petition submitted that the government was shirking its responsibility to hold debate in Parliament. It is alleged that the government was not following its own well-defined policy which stipulates Disinvestment Commission to identify the companies/PSUs after collection of data and thorough examination before making any recommendations. (PTI)

The threat has created fears of even possible physical attacks by the unions. According to sources in petroleum ministry, the issue could take the same direction as what happened in the case of Nalco. Last year employees of Nalco blocked due diligence by bidders, following which government put-off disinvestment in the state-owned firm for the time-being. The potential bidders of Nalco were also manhandled by the unions.

Singh, also the president of oil sector officers’ association, said officers associations of public sector telecom, power, insurance and banking companies besides railways have extended support to their indefinite strike call against privatisation of cash-rich HPCL. “We have submitted a notice of strike to the petroleum minister Ram Naik. All oil PSUs would go on indefinite strike the day government invites price bids for selling its majority stake in HPCL to a strategic partner,” Singh said. Advising HPCL unions restraint, Naik had said the decision to divest government stake in HPCL and BPCL was taken after due consultations and his ministry would implement the decision.