Ministries asked to consider various alternatives to disinvestment in Bhel, CIL

Ministries asked to consider various alternatives to disinvestment in Bhel, CILGovernment-run Bharat Heavy Electricals Ltd (Bhel) and Coal India Ltd (CIL) have been asked to consider various options for raising proceeds and alternatives to disinvestment, Union Finance Minister P Chidambaram revealed on Tuesday.

Mr. Chidambaram explained that the nodal ministries of Bhel and CIL were asked to consider options for selling stakes as market conditions were not favourable for disinvestment.

Speaking to reporters, Mr. Chidambaram said, "BHEL and Coal India have been asked to come back with various options. Ministry of Heavy Industries, Coal Ministry [have been asked] to work out the best option for raising proceeds as an alternative to disinvestment."

Mr. Chidambaram was speaking after a meeting called by Prime Minister Manmohan Singh. The meeting was also attended by Heavy Industries & Public Enterprises Minister Praful Patel, Mines Minister Dinsha J Patel and Coal Minister Shriprakash Jaiswal.

In August 2011, the Cabinet had approved a plan to divest 5 per cent government stake in Bhel, but no step has so far taken in that direction. The government currently owns 67.7 per cent stake in the company.

A few days back, the finance ministry had sent a draft Cabinet note to the Prime Minister's Office (PMO), proposing 5 per cent stake sale in CIL. But, the proposal was opposed by unions.