The Tribune, Chandigarh, India

Thursday, December 27, 2001, Chandigarh, India

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50 YEARS OF INDEPENDENCE

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PM to attend SAARC meeting
CCS decisions today
Tribune News Service

New Delhi, December 26
With Defence Minister George Fernandes unable to reach back in time from his Christmas day stay with the troops stationed in Siachen, the strategically important meeting of the Cabinet Committee on Security (CCS) in which the government was expected to take some Pakistan-related decisions will now be held tomorrow.

Although the CCS, chaired by Prime Minister Atal Behari Vajpayee, did meet for about 75 minutes, but a decision on all the strategically important issues was held over till tomorrow, when Mr Fernandes will also be present.

The other members, Home Minister L.K. Advani, External Affairs Minister Jaswant Singh and Finance Minister Yashwant Sinha besides the three Service Chiefs and senior security officials were however present for the meeting.

Briefing newsmen after the meeting Mr Jaswant Singh said Prime Minister Atal Behari Vajpayee will attend the SAARC summit to be held in Kathmandu from January 4 to 6.

This sets at rest speculation about Mr Vajpayee’s participation in the summit in view of the escalating Indo-Pak tension after the December 13 attack on Parliament by Pakistan-based terrorist outfits.

Asked about the steps announced by Pakistan against terrorist outfits, Mr Singh said “it is a kind of trickery... simply changing names, shifting headquarters from one part of Pakistan to another or indulging in cosmetic seizure of assets makes a mockery of the gravity and enormity of issues.”

He said Indian High Commissioner to Pakistan Vijay K. Nambiar, who arrived here last night from Islamabad following India’s decision to recall him, had separately met him.

Mr Nambiar will be called to the CCS meeting tomorrow to brief whatever he discussed with the Pakistan authorities before departing from Islamabad, he said.

At the CCS meeting tomorrow the government is expected to take decisions to step up its diplomatic offensive against Pakistan in the wake of the terrorist attack on Parliament.

It is also expected to discuss scaling down the strength of Pakistan High Commission here as also withdrawal of the Most Favoured Nation Status granted to it.

With the Defence Minister back after firsthand reports from Siachen the meeting is also expected to review the situation along the borders in view of the Pakistani military build-up.

Govt to sell stake in IBP, VSNL, ITDC

New Delhi, December 26
The government tonight decided to sell stake by January 2002 in IBP Company, VSNL and 11 hotels of the ITDC and Hotel Corporation of India, but deferred the privatisation of loss-making Hindustan Copper till its financial restructuring.

The government also decided to sell 51 per cent stake in the profit-making Shipping Corporation of India with a cap of 25 per cent for foreign investment.

Announcing the decision taken at an extended meeting of the Cabinet Committee on Disinvestment chaired by Prime Minister Atal Behari Vajpayee, Disinvestment Minister Arun Shourie said issues relating to surplus land, tax tangle and security would be settled before closing of the price bids that could spill over to early February.

“We will close the price bids and try to complete the deal by January-end. Only in case of VSNL, it can take slightly more time as there are a number of issues that need to be settled,” Mr Shourie said.

Approving the draft share-holders and share purchase agreements, CCD decided to tackle the about 1,400 acres surplus land either by selling it separately or demerging it.

“Land value will not be built in the reserve price and strategic partner will have to take into account only the income streams and buildings and other assets,” Disinvestment Secretary Pradeep Baijal said.

Privatised VSNL would continue to enjoy most-favoured customer relation for two years with other state owned telecom entities — BSNL and MTNL for telecom traffic — provided they match the lowest price.

Clearing the decks for inviting price bids for IPB by approving transaction documents, the CCD decided that the accumulated dues of the company with the Oil Coordination Committee (OCC) on account of subsidies under the administered pricing mechanism till current fiscal would be settled within six months of submitting the audited accounts.

The successful bidder would have to invest Rs 2,000 crore in any oil business other that retail outlets over the next 10 years, failing which it would be subjected to a 25 per cent penalty.

Taking note of poor response for many of ITDC and HCI hotels during the first round of bidding, the CCD changed the criteria for determining the rent and value wherein it cut down lease land rent from 6 per cent to 2 per cent in case of HCI payable to Airport Authority of India.

Under the revised structure, the government would sell eight hotels of ITDC and give two other on lease rental where 75 per cent valuation would be for land and the remaining 25 per cent for building.

The CCD also decided to leave the reserve of about Rs 2000 crore with VSNL, needed in obligation of its ADR/GDR, contingent liabilities and investment needs for proposed national long-distance operations. PTI