ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • National Highway construction slows to 20.43 km per day in first 4 months of current fiscal
  • Independence Day Special: How investment habits, preferences of people have changed over the past 75 years
  • BMW M4 Competition Coupé 50 Jahre M Edition: Price and features | Photos
  • Financial Independence for Women: top investment tips for the other half to make them independent moneywise
Read in App
Business News » India News

George Fernandes: The minister who threw Coca-Cola out of India, stalled HPCL privatisation

In 1977, he threw Coca-Cola out of India and two-and-a-half decades later, put spokes in the sale of India's second-biggest fuel retailer HPCL to the likes of Reliance Industries and Royal Dutch Shell.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
George Fernandes: The minister who threw Coca-Cola out of India, stalled HPCL privatisation
Fernandes was the industry minister in the post-Emergency Morarji Desai government in 1977 when he decided to throw Coke as well as IBM out of India. Image source: Reuters

In 1977, he threw Coca-Cola out of India and two-and-a-half decades later, put spokes in the sale of India's second-biggest fuel retailer HPCL to the likes of Reliance Industries and Royal Dutch Shell. That was George Mathew Fernandes, former defence minister in the Vajpayee government who died Tuesday.

A firebrand trade unionist and socialist, Fernandes was the industry minister in the post-Emergency Morarji Desai government in 1977 when he decided to throw Coke as well as IBM out of India over their refusal to follow the provision of what was then the Foreign Exchange Regulation Act (FERA).

The provision stipulated that foreign companies should dilute their equity stake in their Indian associates to 60 per cent.

Fernandes wanted Coca-Cola Company to not just transfer 60 per cent of the shares of its Indian firm but also the formula for its concentrate to Indian shareholders. The company said it was agreeable to transferring a majority of the shares but not the formula, which it contended was a trade secret.

The company exited the Indian market as the government denied a licence to import Coke concentrate. Fernandes then introduced a substitute indigenous drink called '77'.

Coca-Cola, however, made a comeback in October 1993 post-liberalisation of the Indian market by the P V Narasimha Rao government and has maintained a strong presence ever since.

Two-and-a-half decades later in 2002, Fernandes was at the forefront of opposing privatisation of Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL).

He was the defence minister under Prime Minister Atal Bihari Vajpayee but never shied away from speaking his mind about the disinvestment and even put it in writing that the sell-off policy was "making the rich richer and creating a private monopoly".

Fernandes, who was also the NDA convener, was often used by others in the ruling alliance to train guns on the then Disinvestment Minister Arun Shourie.

After weeks of a political tug of war, Vajpayee reached a compromise that HPCL will be sold off while disinvestment of BPCL was put off to a later date. But Fernandes insisted that state-owned firms be allowed to bid alongside Shell, Saudi Aramco, Reliance, Petronas of Malaysia, Kuwait Petroleum and Essar Oil for HPCL.

Shourie was opposed to the idea of allowing firms like state-owned Oil and Natural Gas Corp (ONGC) to bid for government stake in HPCL, particularly after Indian Oil Corp (IOC) snapped fuel retailer IBP Co Ltd.

Those opposed to privatisation of HPCL and BPCL also took refuge under the Nationalisation Act saying the Parliament alone had the powers to privatise firms that were nationalised through a law passed by it.

The Supreme Court on September 16, 2003 also ruled that the government should seek Parliament's approval before proceeding with the sale of HPCL and BPCL. With general elections only a few months away, the NDA did not risk going to the Parliament.

It is another matter that the NDA in its second stint, last year, sold the government's entire 51.11 per cent stake in HPCL to ONGC for Rs 36,915 crore.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
George Fernandes
Written By: PTI
Updated: Wed, Jan 30, 2019
06:56 am
PTI
RELATED NEWS
George Fernandes passes away: All you need to know about former Defence Minister George Fernandes passes away: All you need to know about former Defence Minister
George Fernandes dead at 88; Was Defence Minister in Vajpayee government George Fernandes dead at 88; Was Defence Minister in Vajpayee government

LATEST NEWS

75th Independence Day: PM Modi Speech LIVE - When and where to watch on 15 August Red Fort Address

Will NEET-JEE merge with CUET? Here's what UGC proposed | Check details

One Piece Film Red release date in India announced?

Independence Day: List of patriotic TV serials, web series, audio shows to watch and listen to

Wealth Guide: How to avoid costly trading mistakes in volatile market—Tips

CUET-UG phase-4 exam postponed; new exam date, schedule and centres | Full details here

Karthikeya 2 release date: Nikhil SIddharth movie releases today; what you need to know about sequel of 2014 mystery movie

Azadi Ka Amrit Mahotsav: ITC launches integrated initiatives to support Har Ghar Tiranga campaign to mark 75 years of Independence

Noida twin towers demolition: 3500 kg explosive, 9400 holes; how 100-metre tall structures will be razed

Tesla stock split date 2022 news: Record date, split ratio, history, TSLA Nasdaq share price - All details

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV