The Hindu : Panel against NALCO privatisation

Online edition of India's National Newspaper
Saturday, Nov 23, 2002

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Panel against NALCO privatisation

By Our Special Correspondent

NEW DELHI NOV. 22. A Parliamentary Committee today suggested that the Centre retain the National Aluminum Company (NALCO) in the public sector, both in the interest of competition and removal of regional backwardness.

The NALCO disinvestment issue had taken political hues with almost all parties in Orissa opposing it. Even the ruling Biju Janata Dal, a constituent of the National Democratic Alliance, had joined the chorus of protest.

In its 21st report, the Lok Sabha Committee on Petitions, recommended that the Government should give a "fresh look and thought" to the decision.

At a press conference, the chairman of the committee, Basudeb Acharia, said the "unanimous" recommendation came after a visit to the NALCO site, interaction with members of the trade union and management of the company. NALCO had 210 million metric tonnes deposit of bauxite, valued at Rs.15,000 crores, and for a company with assets of Rs. 22,000 crores, the reserve price was Rs. 2,982 crores. Even the Disinvestment Commission had not recommended lowering of Government equity in NALCO.

The committee noted that in September 2001, the Ministry of Disinvestment brought before the Cabinet Committee, disinvestment in two phases — 30 per cent through Initial Public Offerings and, then, through strategic sale to bring the Government equity to 26 per cent. The Department of Mines had suggested to the Ministry of Disinvestment that the decision with regard to two phases should be adhered to.

But the Disinvestment Ministry did not "appear to have given any serious thought to the suggestion'' and decided in July 2002 to revise earlier decision by opting of process of strategic sale simultaneously with IPO.

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