THIRUVANANTHAPURAM: The state cabinet has asked chief minister Pinarayi Vijayan to convey Kerala's disagreement and register a protest over Centre's decision to bar state governments from participating in the bid for the disinvestment of Hindustan Lifecare Ltd (HLL).
After Centre decided to privatise the Mini Ratna headquartered in the state capital, the state government was gearing up to participate in the bid process to take over the PSU. As the state government was preparing for the bid, the Centre informed the state that governments or governmental institutions cannot participate in the bid. It is in response to this communication that the state is now preparing to register its protest with the Centre.
Even if the state is allowed to participate in the bid, the government's chances of winning the bid is slim as the Centre had placed the company and its global assets for disinvestment as a single unit, while the state's intention is to acquire only the assets of the company that are in Kerala.
At present, HLL Lifecare is spread across 118 nations with seven subsidiary companies comprising 21 offices and seven manufacturing units across locations with its total value pegged above Rs 1,400 crore.
The state cabinet had earlier decided to bid for the company, which has its main unit in the state capital in the 19 acres that was given free of cost by the state government in 1967. After the Centre announced its decision to disinvest the company, the state cabinet had entrusted Kerala state industrial development corporation to explore the possibility of acquiring the company and its assets in state, by participating in the bid.
Meanwhile, industries minister P Rajeeve said that the Centre's denial of permission to the state government in participating is not lawful, and will not hold up if there is a legal scrutiny. He said that the state is preparing to go ahead with participating in the bid.
