The Supreme Court on Friday issued notices to the union ministries of finance and disinvestment on a petition challenging the Centre’s decision to initiate the process for privatisation of public sector undertaking Hindustan Copper Ltd (HCL).A bench comprising Justice S. Rajendra Babu and Justice G.P. Mathur, while issuing notices, directed the matter to be tagged along with another petition challenging privatisation of railway coach manufacturing company Jessop and Company. The petition filed by four labour unions active in HCL alleged the PSU was created by an Act of Parliament in 1972, and hence it cannot be privatised by an executive permission. Drawing a parallel with the case of privatisation pertaining to HPCL and BPCL, the petitioners said that to privatise PSUs created by a legislation, the government had to first take permission from Parliament or repeal the law.The petitioners stated that HCL was created by the Indian Copper Corporation (acquisition of undertaking) Act, 1972, and was a profit making company till 1996. The petitioners said HCL in 1990 had commissioned a new cast wire rod plant at Taloja in Maharashtra and was doing very well till the end of financial year 1996. However, its operations suffered a setback mainly due to substantial fall in London Metal Exchange copper prices and the increase in the cost of mining of copper ore. It said the government issued notification for strategic sale of 98.05 per cent share holdings in HCL for expression of interest from interested parties in 2002.
