The divestment commission on Friday recommended privatisation of Hooghly Dock and Ports by inducting a strategic partner after obtaining statutory clearances.
In its 17th report submitted to government recently, the commission said that the government should offload its entire stake in the company to a strategic partner at the earliest after finalising a restructuring package in consultation with the bidders.
Expressing concern over the problems faced by the government in privatisation of oil majors, the commission noted that the company which was nationalised in 1984 through an Act of Parliament should be privatised only after necessary legal clearances were obtained.
Divestment ministry had run into problems over privatisation of Hindustan Petroleum and Bharat Petroleum which were also nationalised and had to seek the opinion of Attorney General before proceeding further.
It, however, noted that government should incorporate conditions in the shareholders pact to ensure that company fulfills its exiting obligations with respect to orders being executed.
The commission also suggested that company should be closed in the alternative if the government fails to find any buyers adding that there was no rationale for government to remain in the company as it was not strategic.
The company has an authorised share capital of Rs 300 crore (Rs 3 billion) and employs over 800 people.