Hard to give timeframe for ONGC, BHEL divestment: govt

The government today said it can't give a timeframe for the completion of disinvestment process in public sector firms ONGC, BHEL and NBCC, because of various factors including market conditions.

"Disinvestment proposals of Oil and Natural Gas Corp, Bharat Heavy Electricals Ltd and National Building Construction Corp are at various stages of implementation.

"It is difficult to give any timeframe for completion of the transactions as the same would depend on a number of factors like appointment of independent director, preparedness of the company as well as the market conditions," Minister of State for Finance S S Palanimanickam said in a written reply in Lok Sabha.

He added that during 2011-12 disinvestment of 5% paid-up capital of Power Finance Co has been completed and government has realised Rs 1,144.55 crore from the proceeds.

Besides, the government has approved disinvestment of 5% stake in ONGC, 5% in BHEL and 10% in NBCC, he said.

"Realisation from sale of shares would depend on the market conditions at the time the sale takes place, therefore, it may not be realistic to estimate the amount to be realised," Palanimanickam said.

To another query, he said the government has no plan to abolish the Securities Transactions Tax (STT), levied on equity trades.

He said the total collection of STT in financial year 2010-11 was Rs 5,985.07 crore, "which would represent the estimated revenue loss if there is no levy of STT".

At present, the rate varies from 0.025% to 0.25%, depending upon the type of security traded and transaction - whether sale or purchase.

To another query, he said that total investment by Foreign Institutional Investors till November this fiscal stood at Rs 8,503.7 crore.

Replying to another written query on the Public Procurement Bill, Palanimanickam said, "The government intends to introduce the Bill in Parliament during the current financial year."

The Bill intends to regulate public procurement by all ministries and departments of the central government, CPSEs, autonomous and statutory bodies controlled by the Centre and other procurement agencies.

A draft of the proposed Bill has been placed on the website of the Minister of Finance for eliciting comments from public, Palanimanickam said.