Letter to the Minister of Finance and Corporate Affairs (HLL & Hindustan Newsprint)

Dear Shri. Arun Jaitley ji,

Kindly refer to your D.O. Letter No. 6/1/2017-DIPAM-II-B dated January 15, 2018 in response my D.O letter submitted to the Hon’ble Prime Minister on June 17, 2017.

You will appreciate that the public sector undertakings have made stellar contribution to the economy both at the State and national level. Many of the Central PSEs located in Kerala particularly Hindustan Newsprint Limited (HNL) and HLL Lifecare Ltd have been making significant contribution to the local economy,.

I would like to state that mechanical classification of CPSEs into “high priority” and “low priority” based on Nation Security, Sovereign function at arm’s length and Market Imperfections and Public Purpose, does not fully distinguish the critical role that PSEs play in nation building. Rather than accepting the recommendations of the Niti Aayog, conscientious decision may be taken taking into account the public purpose and the contribution of PSUs to the employment and economy.

You will fully appreciate that Hindustan Newsprint Limited (HNL) and HLL Lifecare Ltd are engaged in key sectors where their intervention is making a significant difference both in price as well as quality of the products. HNL is a profit making company for a long time but for the last three years has been facing a severe adverse environment. HLL Lifecare is a profit making company.

I would therefore request Government of India to re-consider the ‘in principle’ decision of strategic disinvestment of the Hindustan Newsprint Limited and HLL Lifecare Ltd and to retain them as CPSEs.

With regards,

Yours sincerely,

PINARAYI VIJAYAN

Shri. Arun Jaitley
Hon’ble Minister of Finance and Corporate Affairs,
Government of India.
134, North Block,
New Delhi-110011.