Industries Dept to take a call on PACL divestment

Vijay C Roy

Tribune News Service

Chandigarh, June 24

Having failed to attract any bidder to disinvest the government’s stake in Punjab Alkalies and Chemicals Ltd (PACL) despite repeated attempts, the Directorate of Public Enterprises & Disinvestment (Punjab) has written a letter to the Industries Department to suggest the future course of action.

It intends to dilute 44.26% stake of the Punjab State Industrial Development Corporation (PSIDC) in PACL.

In its fourth attempt last year, the state government had failed to attract any buyer as all the four qualified bidders, namely Aditya Birla Chemicals (India) Pvt. Ltd, Nirma Ltd, Punjab-based Kudos Chemie Ltd and a consortium of M/s Al Shemail Garments & Perfumes Tr.LLC (lead member 90%) & Avenue Chemicals (P) Ltd, didn’t submit their financial bid.

“We have written a letter to the Industries Department last week to suggest us the future course of action,” said sources in the Disinvestment Department.

The company reported a net loss of Rs 14.25 crore in the last fiscal as compared to Rs 12.93 crore it had reported in 2014-15.

Industry experts said even if the state government initiated the process again for disinvestment, it would take at least two years to complete the process.

The Department initiated the disinvestment process initially in 2002 but none of the companies showed interest in purchasing the stake and later on in 2005, due to the change of the government, disinvestment could not take place.

The third attempt was made in 2010 when the state government received only one bid, but it was also not in order, so it was deferred. The fourth attempt was initiated in 2014 when four players were declared qualified.