The government is likely to face resistance from the APIIC to its move to disinvest the organization’s stake in various ventures like Raheja Mind Space, Emaar, Hi-tech city, Cyber Pearl, Larsen and Toubro Info City, Hi-tex Exhibition and other organizations to fill its coffers.

APIIC chairman Mr Sivasubramanyam and vice chairman and MD B R Meena have decided to oppose the government’s move at any cost. Already, the APIIC’s staff are up in arms against the Government for issuing the GO for disinvesting its stake with out discussing the issue with its top brass.

The APIIC has stake in more than 20 joint ventures launched by private parties. Out of the 20 ventures, half of them are making good profits but the asset value in these ventures has not yet been estimated. However, the asset value of APIIC’s share in these profit making ventures is said to be around Rs.2000 Cr.

The Government has decided to disinvest the stake of the APIIC to meet the expenditure required for various welfare schemes announced by it.

Mr TS Appa Rao, Principle Secretary in the Industries department has also expressed his opposition to the move saying that disinvestment at this juncture may not fetch the expected revenue as the real estate values are down now. (JUBS)