Kathmandu, May 3:Of the five different public enterprises, which had been listed for privatisation this year, the Tea Development Board is the only enterprise set to be handed over to the private sector.
“The final negotiations to privatise the Board is nearing completion,” Finance Minister Mahesh Acharya told the Public Accounts Committee (PAC) of the Parliament here today.
PAC invited the Finance Minister and the Finance Secretary at its meeting today to acquire information regarding the steps underway to privatise the Tea Development Board, Butwal Power Company, Himal Cement Factory, Salt Trading Corporation and Rastriya Banijya Bank.
PAC also acquired information about the auditing of the financial transactions made so far by the five enterprises.
Acharya said that the Ministry had invited three proposals for the privatisation of the Tea Development Board. As the company having the most attractive proposal failed to meet the set preconditions, negotiations with an Indian company with comparatively more attractive proposal is underway.
He said that the land occupied by the Board will be leased and after evaluating the remaining assets, 65 per cent of its shares will be sold at a bulk. Out of the remaining 35 per cent shares, five per cent will be given out to the workers while 30 per cent will be kept by the government.
Acharya said that a special team of the privatisation unit has already carried out the auditing of the financial deals made by the Board until the fiscal year 2053/054 B.S.
He said that the cabinet meeting held nearly two years back had decided to privatise the Tea Development Board and the Himal Cement Factory. But as the five proposals received weren’t attractive, the cabinet meeting held two months back has scrapped the proposals and has decided to call new proposals.
Acharya said that the factory had incurred a net loss of 70 million rupees. Sixty five per cent of the factory’s share will be sold out at a bulk, he said.
He said that according to the cabinet meeting held one year back, the government has decided that 75 per cent of the shares of the Butwal Power Company will be given to the private sector, 10 per cent will be given to the general public, 10 per cent will be kept by the government while the remaining shares will be sold to the employees.
Two companies from Britain and Norway had proposed to buy the shares of the Butwal Power Company but as they did not fulfill the set preconditions, their proposals have been cancelled and step is underway to call for new proposals, Acharya said.
He said that the Company had made a net profit of 307 million rupees and the auditing of its financial transactions was in progress.
He said that the government was looking forward to sell 10.68 per cent of the shares, which it still holds in the Salt Trading Corporation. Though the government has received a single proposal for the shares, the proposal does not meet the requirements.
The Salt Trading Corporation has made a net profit of 30 million rupees, he said.
Acharya said that the government was looking forward to carry out the gradual privatisation of the Rastriya Banijya Bank.
“The bank is in loss and I think that the government should not take a hasty decision to privatise it,” he said.
Acharya said that the government had been giving priority to economic reforms. He said the restructuring of the commercial banks must also be taken as a part of the privatisation process.
“The government has already had a lot of experience relating to the privatisation of public enterprises and accordingly it is determined to make the process of privatisation flawless and acceptable to all,” he said.
Turning public enterprises into co-operatives is one of the models of privatisation. Hence the government should not hesitate to convert some of the special enterprises into co-operatives.
PAC members had presented their queries to the Minister at the meeting, which was held under the chairmanship of the Committee Chairman Subash Nemwang.