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'PM to sort out HPCL, BPCL sell-off issue'

Shahid K Abbas in New Delhi

The issue over divestment in public sector oil companies -- Hindustan Petroleum Corporation and Bharat Petroleum Corporation -- would be sorted out once Prime Minister Atal Behari Vajpayee returns from Copenhagen, Union Petroleum Minister Ram Naik hinted on Tuesday.

Speaking to the media in New Delhi on Saturday, Naik said it would be "premature", at this stage, to comment on the issue. He, however, asserted that both the prime minister and Deputy Prime Minister L K Advani were aware of it, and the issue would be sorted out at a meeting which will be called on PM's return

Defence Minister George Fernandes would also be attending the meeting, Naik added.

Naik's observations gives currency to reports that the prime minister has given a go-ahead to the divestment of the two oil sector PSUs.

Meanwhile, petroleum ministry sources, ruled out the possibility of either Oil and Natural Gas Corporation or Gas Authority of India being permitted to bid for the oil majors, after being designated junior partners in the special purpose vehicle.

If the imbroglio over the divestment of HPCL and BPCL gets sorted out soon after the PM's return from Copenhagen, where he is currently attending the third Indo-EU summit, the three-month deadline set to resolve the dispute on the question of privatisation of the two oil refining and marketing entities, would be surprisingly overridden.

The government currently owns 51 per cent in HPCL and 66.2 per cent in Bharat Petroleum, and plans to bring down its holding to 26 per cent in each company.

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