Gujarat industry minister Anilbhai Patel (left) in Calcutta on Saturday. Picture by Kishor Roy Chowdhury

Calcutta, Nov. 26: The Narendra Modi government in Gujarat has set up a high-powered committee under the leadership of Hasmukh Shah, former chairman of IPCL, to chalk out a privatisation programme for the state undertakings.

The government is planning to privatise nearly 20 PSUs in the state that include Gujarat State Petroleum Corporation, Gujarat Alkalies and Chemicals Limited, Gujarat Mineral Development Corporation, Gujarat State Fertiliser Corporation and others.

Anilbhai Patel, Gujarat’s industry minister, said, “A holistic view will be taken on privatisation. The committee is preparing a report on how to go about privatising the state-owned PSUs.”

Privatisation is, however, not new to Gujarat. State-owned PSUs like Gujarat Tractors, Gujarat Electronics & Communications and Gujarat Dairy Development have already been privatised. The government has also received bids for Alcock Ashdown ? a state-owned ship-building company.

Arvind Agarawal, who is the industries commissioner of Gujarat, said the government did not want to pursue privatisation for the heck of it. Many state PSUs had been turned around and privatisation would only be considered as a last option.

“Except for a few (public utility ones), most PSUs are back in the black. And we can get better prices if we now go in for privatisation,” Agarawal said.

Though Gujarat officials were vocal about the state’s achievement in the industrial sector, they failed to give a timeframe within which the value-added tax would be introduced.

The minister said the state was ready with the infrastructure to introduce VAT. “Our chief minister has asked the Union finance minister to publish a white paper on the impact of VAT in those states where it had already been introduced. It is expected that all the BJP-ruled states will take a decision on VAT on the basis of the white paper.”

Presenting a report card of his state, the minister said though the Planning Commission has given Gujarat a growth target of 10.2 per cent (highest in the country), the state has already achieved a double-digit growth.

All the 18,000 villages in the state have electricity. Value of agro-based products in the state has increased to Rs 25,000 crore from Rs 10,000 crore three years back. And the state has received nearly Rs 1,72,000 crore of new investment in 302 projects in the last two years.

GSPC selloff

The Gujarat government will take a call on Gujarat State Petroleum Corporation’s divestment next year.

The government has, however, finalised the privatisation of Gujarat State Petronet Corporation, a subsidiary of Gujarat State Petroleum by February. The company will issue 130 million shares that constitute 25 per cent of the paid-up capital. The proceeds of the IPO will be used to fund the second phase of the pipeline project of the company.

Kotak Mahindra Capital has been appointed as the merchant banker. HSBC Securities and ICICI Securities are co-arrangers of the issue.