Centre turns down Kerala's plea to participate in HLL Lifecare bidding, state up in arms

The state cabinet decided to expresses dissent after the Centre rejected the Kerala government's proposal to participate in the disinvestment of Kerala-based central public sector undertaking HLL Lifecare. The state cabinet also decided to convey its legal provisions to the Centre.

The state government had entrusted its agency Kerala State Industrial Development Corporation to participate in the disinvestment of HLL Lifecare and explore the option of taking over its units in Kerala.

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In response to the letter sent by the state to the centre in this regard, the Department of Investment and Public Assent Management informed 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.

The Chief Minister's Office informed that the cabinet entrusted Chief Minister Pinarayi Vijayan to write to Prime Minister Narendra Modi on the matter, expressing the state's dissent to the centre's stand. The state would also convey the legal positions on the matter to the centre.

HLL Lifecare units in Kerala were set up on state government land. The decision to disinvest the central PSU, which is mainly involved in the production of condoms and contraceptives, had triggered strong agitation by employees.

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