Naveen opposes Nalco disinvestment move

Says Nalco is a very profit making PSU. I don't think disinvestment should happen there

Chief Minister Naveen Patnaik has opposed the central government's plan to offload 10 per cent stake in navratna firm National Aluminium Company (Nalco).

"Nalco is a very profit making PSU. I don't think disinvestment should happen there," Patnaik said in his reaction to the Centre's proposal to dilute stake in the PSU.

Echoing similar views senior Biju Janata Dal (BJD) leader and party spokesperson Amar Prasad Satapathy said, "We have been opposing divestment of Nalco and will continue to do so. We are unable to make out the motive behind divesting a profit-making company. Our party would oppose the decision and stage protest against it." Nalco is amongst 13 PSUs lined up for disinvestment by the central government for divestment. Presently, government of India holds 80.93 per cent equity in Nalco.

A 10 per cent stake sale in the company is expected to garner Rs 1,200 crore. K C Samal, director (finance), Nalco said, "We haven't received any communication from the Central government regarding the stake sale." Nalco has set a net sales turnover target of Rs 8,488 crore for the current financial year. The target is as per an MoU (memorandum of understanding) signed between Nalco and the central mines ministry for 2015-16.

Nalco has also committed to produce 6.825 million tonnes of bauxite, 2.18 million tonne of alumina, 0.38 million tonne of aluminium and generate 6,009 million units of power from its captive power plant (CPP) by the end of this fiscal.

The government plans to divest 5-15 per cent stakes in about a dozen state-owned companies to meet its Rs 41,000-crore sell-off target for this fiscal. Other PSUs where the Union government will dilute its stake include Indian Oil Corporation Ltd (IOCL), MMTC Ltd, Engineers India Ltd, National Mineral Development Corporation (NMDC), National Fertilisers, Hindustan Copper, Indian Tourism Development Corporation Ltd (ITDC), State Trading Corporation, Bharat Heavy Electricals Ltd (Bhel), NTPC Ltd, Rashtriya Chemicals & Fertilisers Ltd (RCF) and Dredging Corporation of India.