Kerala CM says 'preventing' participation in HLL bidding against cooperative federalism
Mar 12, 2022
Thiruvananthapuram (Kerala) [India], March 12 : Preventing state government from participating in an opening bidding process of Hindustan Lifecare Ltd, a central PSU, is against the principles of cooperative federalism, said Kerala Chief Minister Pinarayi Vijayan.
"Preventing a State Government from participating in an opening bidding process will not be in accordance with the principles of cooperative federalism," Vijayan said in a letter to Prime Minister Narendra Modi adding that the "State Government has the competence accorded to it by the Constitution to take a decision on its own such matters."
Noting that he had sent a letter on June 16, 2017, requesting the Centre not to proceed with the privatisation of HLL, the Chief Minister said, "Despite this, when the Government of India decided to go ahead with the disinvestment, the Government of Kerala expressed its interest to participate in the open bidding."
He further said that presently, the Department of Investment and Public Asset Management has communicated to the state government that there is scope for government/government PSEs to participate in the strategic disinvestment process in pursuance of the Preliminary Information Memorandum and Expression of Interest.
As per the Preliminary Information Memorandum and global invitation for the submission of Expression of Interest for the strategic disinvestment of HLL, CPSEs or Central Government-owned Cooperative Societies are the only ones specified as being not eligible to participate in the proposed transaction, he said.
"It is not specified anywhere that the state government/ state PSUs' are not eligible to participate in the bidding process of HLL," Vijayan noted.
He also said that the land for the HLL Lifecare Ltd was acquired and handed over to the Union Government by the state government for setting up a specific project.
"If the Government of India proposes not to retain HLL as a government entity, it follows that the state government should be given the option to retain it as a state PSU. Hence, the state government should be given the First Right to hold the land and assets of the Hindustan Lifecare Ltd in Kerala," the letter read.
Vijayan requested the Prime Minister to either hand over the land and assets of the HLL in Kerala to the state government or permit it to participate in the Expression of Interest process and the Request for Proposal process for the disinvestment of the PSU.
