The Kerala Chief Minister Pinarayi Vijayan has written to Prime Minister Narendra Modi to seek permission for the state government to participate in the strategic disinvestment of HLL Lifecare. The CM said in the letter that the Kerala government should be provided with the first right to hold land and assets of the Central Public Sector Units (PSU).
Pinarayi said in his letter to the PM that preventing a state government (Kerala) from participating in an open bidding process would not be in accord with the principles of cooperative federalism. He said that the state government has the competence accorded to it by the constitution of India to decide on its own in such matters.
The letter stated that the land for the HLL Lifecare Ltd was acquired and handed over to the Government of India by the Kerala government for setting up a particular project. The CM said, "If the Centre proposes not to retain HLL Lifecare Ltd as a government entity, it follows that the state government should be given the option to retain it as a state PSU. Hence the state government should be given the First Right to hold the land and assets of the Hindustan Lifecare Ltd in Kerala," quoted The New Indian Express.
What Is The Entire Matter?
Presently, the Department of Investment and Public Asset Management (DIPAM) communicated to the Kerala government that there is no scope for the government/government PSEs to participate in the strategic disinvestment process to pursue the Preliminary Information Memorandum (PIM) and Expression Interest.
According to PIM and global invitation for the submission of Expression of Interest for the strategic disinvestment of HLL Lifecare Ltd, CPSEs or central government-owned cooperative societies that are the entities wherein the direct holding of the union government or of other CPSEs is 51% or above are the only ones specified as being ineligible to participate in the proposed transaction, the letter said.
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