The Hindu : Disinvestment Ministry clarifies on NALCO

Online edition of India's National Newspaper
Thursday, Nov 07, 2002

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Disinvestment Ministry clarifies on NALCO

By Our Special Correspondent

NEW DELHI Nov. 6. The Disinvestment Ministry clarified today that the due diligence exercise for privatisation of the National Aluminium Company (NALCO) has been stopped on the advice of the company's management relating to security arrangements for the interested bidders.

It, however, said the disinvestment process would be delayed considerably, as plant visits by prospective buyers was an integral part of the process.

In a statement, the Ministry said the extent of delay would depend on the speed with which the plant visits could be resumed. The incident referred to was the heckling of a team from Hindalco by protesters at the plant last week.

The Ministry denied news reports that it had approached the Prime Minister's Office for the Nalco due diligence process and it had it sought specific instructions.

The disinvestment of NALCO has become increasingly controversial since protests were carried out in Orissa against the move. The Coal and Mines Minister, Uma Bharti, had publicly opposed the policy and instead sought modernisation of the project before any such decision was taken. At a recent press conference, she said she would take up the issue with the Prime Minister.

Giving the backdrop of the decision to drop the due diligence process now, the Ministry said qualified interested parties were supposed to commence plant visits from October 28. Due to inadequate security arrangements, the programme was disrupted by some agitators. The plant visits would commence once adequate security arrangements were in place. The Government plans to disinvest 60 per cent stake in the

Company, through a three stage process involving ADR, domestic issue and strategic sale.

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