The issue of the sale of Punjab Alkalies and Chemicals Limited (PACL), a government industrial undertaking at Nangal, has resurfaced ahead of the 2027 Punjab Assembly elections. BJP state vice-president Subhash Sharma has demanded an investigation by the Enforcement Directorate (ED) into the disinvestment of the Punjab government’s shareholding in the company in September 2020, during the Congress government.
In a representation to the Director of Enforcement, a copy of which is available with The Tribune, Sharma has sought a preliminary examination of the sale of PACL.
According to Sharma’s representation, the Punjab Government sold its entire 33.49 per cent shareholding in PACL for Rs 40.98 crore in September 2020. Citing The Tribune report published on May 19, 2024, based on information obtained under the Right to Information Act from the Punjab State Industrial Development Corporation (PSIDC) and PACL’s 2019-20 annual report, he has questioned whether the government received fair value for its investment.
Sharma has urged the ED to examine the valuation methodology, reserve price, transaction adviser’s report, tender conditions, competing bids and approvals granted before the disinvestment.
A key issue raised in the complaint is PACL’s reported acquisition of a 70 MW thermal power plant from Chhattisgarh for approximately Rs 40 crore, a few months before the disinvestment. Sharma has alleged that the reported acquisition cost was almost equivalent to the consideration received by the government for its entire 33.49 per cent stake.
The BJP leader has also questioned the valuation of PACL’s immovable assets, including commercial office in Chandigarh, whose estimated value has been reported at around Rs 60 crore. He has sought independent verification of the property’s market value, ownership and any liabilities or encumbrances attached to it.
The representation also refers to approximately 88.86 acres of factory land at Nangal, other land holdings, plant and machinery, and industrial infrastructure. Sharma has alleged that these assets require examination to determine whether they were appropriately considered while valuing the government’s shareholding.
Another aspect flagged in the complaint is the reported investment of approximately Rs 116 crore in plant modernisation, as referred to in PACL’s 2019-20 annual report.
 The representation further cites reported net profits of Rs 55.86 crore in 2018-19 and Rs 8.80 crore in 2019-20, besides possible fiscal incentives under Punjab’s Industrial and Business Development Policy, 2017. It seeks an assessment of the company’s financial position, receivables and potential economic benefits at the time of disinvestment.
Sharma has requested the ED to trace the financial trail, examine subsequent share transfers and determine whether the evidence discloses any scheduled offence or proceeds of crime warranting action under the Prevention of Money Laundering Act, 2002.
The issue of sale of PACL which has now been named as Primo Chemicals after sale had also cropped up during the last assembly elections. During the last assembly elections AAP had raked up the issue. However, the present government has not ordered any inquiry into the sale.