HLL Lifecare Ltd, the state-owned company that makes Moods condoms, could soon have private stakeholders.
The company is among the several identified by the government for strategic sales as it plans to achieve a record disinvestment target for the current fiscal year.
The other shortlisted companies are Shipping Corporation of India, HMT (International) Ltd, Rajasthan Electronics & Instruments Ltd, Goa Shipyard Ltd and HSCC (India) Ltd. The Department of Investment and Public Asset Management (DIPAM) has picked the companies from those identified by Niti Aayog as possible candidates for strategic sales.
A senior government official confirmed the development and said that in most cases, the strategic sales will be conducted through a two-stage auction.
“In the first round, we will invite bids from all interested parties and after reviewing the bids, we will enter into negotiations with the shortlisted bidders in the second stage,” he said.
The government has set itself a disinvestment target of Rs 72,500 crore for this fiscal, of which Rs 15,000 crore is to come through strategic sales. The nodal departments and ministries are in the process of appointing transaction advisers for strategic sales in some of these units in consultation with DIPAM.
Some administrative ministries, however, feel they have been bulldozed into speeding up the strategic sale process. “These suggestions are primarily based on the discussions held with Niti Aayog. In most cases, the decisions are arbitrary and just on the basis that the government should not be in those sectors as there is substantial private participation,” said an officer of secretary rank at an administrative ministry, who did not want to be named.
Another government official said DIPAM should first concentrate on divesting loss-making companies rather than going ahead with stake sale in profitable firms.
“If these firms are profitable, they must be doing something right. And if the government wants to exit, why not telecom firms such as BSNL and MTNL which are running in huge losses?” the official said, adding that both Niti Aayog and DIPAM should come up with a detailed policy on the disinvestment programme.