Shourie seeks audit of BALCO deal

By Our Special Correspondent

NEW DELHI, MARCH. 7. Even as the Disinvestment Minister, Mr. Arun Shourie, has written to the Comptroller and Auditor-General seeking an audit of the BALCO sale transaction, an apex industry chamber has described the entire controversy as ``embarrassing'' in an open letter to the Chhatisgarh Chief Minister, Mr. Ajit Jogi.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has pointed out that the developments have come in the midst of a dialogue with a U.S. investment team where Chhatisgarh has been identified as a prominent investment destination. ``To talk of foreign investment when executives are put under `arrest' by recalcitrant labour and functioning plants closed down is a travesty of the entire effort,'' it says.

With the strike by the BALCO employees at Korba continuing, Mr. Shourie has asked the CAG, Mr. V.K. Shunglu, to assign officials to see the records of the Bharat Aluminium Company's strategic sale to Sterlite Industries and ``conduct the audit''. He said the officers of the Department of Disinvestment and the Mines Ministry would assist the designated team to complete the audit and complete the report ``at an early date''.

While announcing the sale to Sterlite, Mr. Shourie had stressed that all documents would be handed over the CAG for audit to ensure complete transparency in the transaction. The letter to the CAG is evidently meant to fulfill this commitment.

FICCI concern

Simultaneously, the FICCI has entered the fray with its president, Mr. Chirayu R. Amin, in an open letter to Mr. Jogi, pointing out that it has included Chhatisgarh as a prominent investment destination for the mining and metals sector in today's presentation to U.S. investors. The FICCI is also scheduled to meet a South African Minister to discuss the State's potential for the renowned minerals and mining companies of that country to invest. ``Once again you will appreciate our embarrassment in continuing to mention your State as an investment destination at this juncture,'' Mr. Amin says.

The letter expresses concern at the Korba strike and the immobilisation of the plant resulting in national wastage of productive facilities set up with public money. The smelter and the pot at the Korba plant have been laid to rest and unless these are re-ignited immediately and taken to higher temperatures, these will be damaged beyond repair, it is pointed out.

``The implications are that fresh expenditure of over Rs. 100 crore will be required to put up new facilities,'' the letter states. This would also mean production loss for a long time and consequent loss to the company. According to the FICCI, the steps now being resorted to by the BALCO labour unions are ``suicidal'' and can make a viable, smoothly functioning, profitable unit slip into industrial sickness.

The FICCI has expressed the view that other legitimate statements could have been invoked in case there are valid reasons for opposing the privatisation deal. ``After all, BALCO is a national property and the national exchequer must get the right price for the asset. There are no two opinions on that. However, we strongly believe that what is happening in Korba is certainly not the right approach,'' the letter says.

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