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Naik to tout Balmer Lawrie for pro-reform image

Gaurav Raghuvanshi in New Delhi

After Engineers India Ltd, Petroleum Minister Ram Naik is likely to go out of his way and let the sale of Balmer Lawrie and Company Ltd go through without opposition to prove his pro-reform credentials and stress that he was not against divestment per se.

According to top government officials, Naik has decided against pressing for a reconsideration of the CCD decision to sell the company as a single entity to a strategic partner.

The petroleum ministry had recommended that Balmer Lawrie be sold after splitting its core and non-core activities.

In response to a recent note moved by the petroleum ministry, the finance ministry has gone one step ahead to say that all the eight business activities should be sold separately on the lines of India Tourism Development Corporation hotels to realise the best price.

But as an olive branch to Divestment Minister Arun Shourie and to prove his pro-reform credentials, Naik is believed to have decided against pursuing the matter.

Meanwhile, the divestment ministry has received 16 expressions of interest for the 61.8 per cent equity in Balmer Lawrie on sale and is set to invite the prospective bidders, that include Aban Lloyd, Fedder Lloyd, Maharashtra Seamless and Kolkata-based financial re-engineering company Srei Capital Markets Ltd, to carry out due diligence ahead of calling the final price bids.

Naik, who had virtually become the face of the anti-divestment stance within the government by successfully stalling the sale of downstream oil companies Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd, is also allowing EIL to be sold without putting up any serious resistance.

The minister has gone on record saying he had no opposition to EIL divestment and refused to entertain the company's employee association's pleas to take up cudgels on their behalf.

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