Pinarayi Vijayan (File photo)
Thiruvananthapuram: The state cabinet has asked Chief Minister Pinarayi Vijayan to apprise Kerala of its dissent and register a protest over the Centre’s decision to bar state governments from participating in the bid for disinvestment of Hindustan Lifecare Limited (HLL).
After the Center decided to privatize the Mini Ratna headquartered in the state capital, the state government was gearing up to participate in the bidding process to take over the PSUs. As the state government was preparing the bid, the center informed the state that governments or government institutions could not participate in the bidding. In response to this communication, the state is now preparing to register its protest with the Centre.
Even if the state is allowed to participate in the bid, the chances of winning the government’s bid are slim as the Center had put the company and its global assets for disinvestment as a single entity, while the state intended only to divest the assets. The company is to be acquired which is based in Kerala.
Presently, HLL Lifecare is spread across 118 countries comprising of seven subsidiaries comprising 21 offices and seven manufacturing units with a total value of over Rs 1,400 crore.
The state cabinet had earlier decided to bid for the company, whose main unit is on 19 acres in the state capital, which was given free of cost by the state government in 1967. After the Center announced its decision to disinvest the company, the state cabinet had tasked the Kerala State Industrial Development Corporation to explore the possibility of acquiring the company and its assets in the state by participating in the bidding.
Meanwhile, Industries Minister P Rajeev said the Center’s denial of permission to the state government to participate is not valid, and will not be able to stop it if there is a legal inquiry. He said the state was preparing to go ahead with participating in the bid.
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