Hmt'S Tractor Arm To Be Sold First

The government has decided to sell its entire stake in HMT's tractor division to a private investor.

According to minister of state for industry Sukhbir Singh Badal, bidding may start within 10 days.

HMT's tractor unit will be the first of the present lot of public sector units shortlisted by the department of heavy industry for joint venture formation and strategic sale where the government is open to divesting 100 per cent stake.

Earlier, the government had decided to offload 51 per cent of its stake in the unit to a joint venture partner.

After taking that decision, it considered increasing this limit to 74 per cent.

Now it is willing to go in for 100 per cent divestment.

"It all depends on the kind of offers we get," Sukhbir Singh Badal said.

"If we get a fantastic offer for 100 per cent stake, we'll be more than willing to go along with the proposal."

The government is considering floating an open tender within 10 days to start the bidding process.

The government had earlier considered floating a limited tender by inviting only parties that had bid earlier: Mahindra & Mahindra, Eicher and L&T-John Deere.

These three companies, along with Escorts, had participated in the bidding process two years ago.

The government contends that since the three companies had lost out in the bidding process then, they will be familiar with HMT's tractor division.

They will also have a clear assessment of its market value and future potential.

However, since a couple of years had passed since the last tender, they felt that there was need for a fresh tender allowing all parties to bid, officials pointed out.