While the protest by Left Parties over sale of government stake in blue chip Bharat Heavy Electricals Limited continues, the Centre has decided to go ahead with the divestment of four more public sector units.
The government had invited expressions of interest from companies to turn around Tyre Corporation of India and seven firms, including Indo Wagon controlled by Ruias, have shown interest in taking over the company.
For turnaround of NEPA Ltd and Richardson and Cruddas too, the government has decided to induct a joint venture partner, sources said.
However, sale of Tyre Corporation and Richardson and Crudass will require Parliament's nod.
While Richardson and Cruddas was acquired by the government in 1973, Tyre Corporation came into being after nationalisation of two sick companies -- Incheck Tyres and National Rubber Manufacturers Ltd.
When the case of Tyre Corporation was referred to the department of divestment, it asked the department of heavy industry, under which it functions, to seek the opinion of the Attorney General if parliamentary nod for divesting the company was required.
Both these companies have already gone through the Board for Reconstruction of Public Sector Enterprises, which agreed to the administrative ministry proposal to induct a joint venture partner for turning around these companies.
Although Richardson and Cruddas is sick, the company has some valuable real estate in Mumbai.
The BRPSE has told the administrative ministry that it should try to explore the possibility of unlocking the value in the real estate while inviting expression of interest for the company.
A company called Shell Finance is one of the players that has shown interest in Richardson and Cruddas.
In case of paper company NEPA too, the BRPSE has agreed to the proposal of the ministry of heavy industry to scout for a joint venture partner for its revival.
While the BRPSE is in favour of handing over the company to other public sector paper companies like Tamil Nadu Newsprint and Hindustan Newsprint and Hindustan Paper, the government is also planning to sell its entire 27 per cent stake in Tide Water Oil Company, an associate company of the sick Andrew Yule and Company.
Apart from Tide Water Oil, the government is also planning to sell the electrical equipment business of Andrew Yule.
A few companies, including petroleum giant Oil and Natural Gas Corporation, are doing due diligence for Tide Water Oil.
ONGC already has a stake in the company. The sale of 2,28,390 shares that the government holds in Tide Water Oil will fetch it a little more than Rs 400 crore based on the current price of shares on the Bombay Stock Exchange.
For restructuring of Andrew Yule, the government will require Parliament's nod as it too was nationalised through an Act of Parliament.
