Kerala government has raised objections against the centre's stand disallowing a state government-owned entity in participating in disinvestment process of Kerala-based central public sector undertaking, HLL Lifecare.
In a letter sent to Prime Minister Narendra Modi, Kerala Chief Minister Pinarayi Vijayan said that preventing the state government from participating in the bidding process for HLL Lifecare was not in accordance with the principles of cooperative federalism.
The Department of Investment and Public Asset Management recently communicated to the state government that the norms did not allow government-owned agencies to take part in the disinvestment process as government equities could not be sold to government companies.
Vijayan said in the letter to the Prime Minister that as per the bidding documents of HLL Lifecare, only central government-owned agencies were ineligible to take part in the bidding process.
Vijayan also said that since the land for setting up HLL Lifecare was earlier acquired by the Kerala government and handed over to the Centre, the state government should be given the option to retain HLL Lifecare as state PSU or else it shall be allowed to take part in the bidding process.
Thiruvananthapuram-headquartered HLL Lifecare was set up in 1966 as Hindustan Latex Limited. It is mainly involved in the production of health care products like condoms and contraceptives. The centre's decision to go for disinvestment of the Mini Ratna unit had triggered strong agitation by employees. Subsequently, the state government decided to explore the option of retaining the unit as a state public sector undertaking and entrusted the Kerala State Industrial Development Corporation to participate in the disinvestment process.
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