Expert body to offload 12 cos' shares to be formed
Wednesday, 10 February 2010
FE Report
Energy and power ministry has decided to form an expert committee to offload shares of 12 of its companies by protecting the maximum interest of the people.
The ministry held a meeting with all the officials of the companies to learn their views about offloading shares and how to handle the process efficiently, said an official of the ministry.
The ministry is working on a decision taken in the January 13 inter-ministerial meeting, where it was decided that the government would offload shares of a number of state-owned companies to bring more vibrancy in the market.
"The minister has instructed to form the expert committee to offload the shares," the official said.
"We have to study the offloading process very carefully as we want to give maximum benefit to the people," he said.
The committee will be formed to evaluate the entities in the sector and recommend the quantity of shares to be offloaded and the benefit to be derived by the people, he added.
The companies are Liquefied Petroleum Gas Ltd, Padma Oil Company Ltd, Bakhrabad Gas Transmission, Gas Transmission Company, Jalalabad Gas, Paschimanchal (Western) Gas Company, Sylhet Gas Fields Company, Bangladesh Gas Fields Company, Rupantarito Prakritik Gas, DPDC, PGCB and Rural Power Company Limited.
However, some officials of the companies said the government can spend from its own resources for the development of the sector and there is no need to raise funds from the public, said another energy ministry official.
"Their views are if the government decided to offload shares, we have to oblige but before taking such a decision, what benefit will it bring to the sector should be considered first," he said.
One official said the Power Development Board needs Tk 13 billion from the government to offset its losses and in this scenario how wise it would be to offload shares of its companies DPDC, PGCB and Rural Power Company Limited, he added.
"Another official suggested that a committee should be formed to evaluate the entire sector and recommend measures for its development," the energy ministry official said.
DESCO offloaded 25 per cent of its shares and the government has decided to offload another 15 per cent by June. The government also decided to offload shares of Power Grid Company and RPCL.
Energy and power ministry has decided to form an expert committee to offload shares of 12 of its companies by protecting the maximum interest of the people.
The ministry held a meeting with all the officials of the companies to learn their views about offloading shares and how to handle the process efficiently, said an official of the ministry.
The ministry is working on a decision taken in the January 13 inter-ministerial meeting, where it was decided that the government would offload shares of a number of state-owned companies to bring more vibrancy in the market.
"The minister has instructed to form the expert committee to offload the shares," the official said.
"We have to study the offloading process very carefully as we want to give maximum benefit to the people," he said.
The committee will be formed to evaluate the entities in the sector and recommend the quantity of shares to be offloaded and the benefit to be derived by the people, he added.
The companies are Liquefied Petroleum Gas Ltd, Padma Oil Company Ltd, Bakhrabad Gas Transmission, Gas Transmission Company, Jalalabad Gas, Paschimanchal (Western) Gas Company, Sylhet Gas Fields Company, Bangladesh Gas Fields Company, Rupantarito Prakritik Gas, DPDC, PGCB and Rural Power Company Limited.
However, some officials of the companies said the government can spend from its own resources for the development of the sector and there is no need to raise funds from the public, said another energy ministry official.
"Their views are if the government decided to offload shares, we have to oblige but before taking such a decision, what benefit will it bring to the sector should be considered first," he said.
One official said the Power Development Board needs Tk 13 billion from the government to offset its losses and in this scenario how wise it would be to offload shares of its companies DPDC, PGCB and Rural Power Company Limited, he added.
"Another official suggested that a committee should be formed to evaluate the entire sector and recommend measures for its development," the energy ministry official said.
DESCO offloaded 25 per cent of its shares and the government has decided to offload another 15 per cent by June. The government also decided to offload shares of Power Grid Company and RPCL.