New Delhi: The Cabinet Committee on Disinvestment, chaired by Prime Minister Atal Behari Vajpayee, is likely to decide on the eligibility of suitors and the quantum of government stake to be shed from the oil PSU (public sector undertaking) Hindustan Petroleum Corporation Ltd (HPCL).

Sources said the CCD, the dates for which had not yet been decided, would be preceded by a meeting of core group of secretaries on disinvestment, which may recommend quantum of equity to be offered to strategic partner, public and employees.

Meanwhile, Disinvestment Minister Arun Shourie declined to comment on reports that Indian companies would not be allowed to bid for government shareholding in HPCL. His department secretary Pradip Baijal said he was not aware of any such proposal.

Highly-placed sources said the informal meeting of senior ministers convened by Prime Minister Atal Behari Vajpayee last week, had only decided on the mode of divesting government shareholding, strategic sale for HPCL and public offering in the case of Bharat Petroleum Corporation Ltd (BPCL).

Meanwhile, Petroleum Ministry is believed to be preparing a case for allowing Oil and Natural Gas Corporation (ONGC) to bid for HPCL.

The ministry, which received a formal request from ONGC on December 12, is likely to advocate for the exploration firm on grounds that acquisition of HPCL was essential to its business plan of becoming a vertically integrated oil firm, sources added.

PTI