Naveen opposes Nalco divestment move

The proposal of the Department of disinvestment for 10 per cent dilution of government share in the Central sector Navratna firm, National Aluminium Company (Nalco) has raked up a row in the state with ruling Biju Janata Dal (BJD) vehemently opposing the move.

“BJD is against the idea of disinvestment in Nalco”, Orissa chief minister and BJD supremo, Naveen Patnaik told media persons here today. Senior BJD leader and MP, Pyari Mohan Mohapatra earlier stated that the party would fight against the move if the Centre went ahead with the proposal. The divestment in Nalco is expected to raise over Rs 2,000 crore for the government which is targeting to mobilize about Rs 40,000 crore from stake sale in different public sector units (PSUs) during the current financial year.

The government, at present, holds 87.15 per cent share in the navratna firm and post divestment, its stake will reduce to 77.15 percent. Earlier, the Union mines minister B K Handique had revealed that the ministry of finance had evinced interest in selling 10 per cent stake in the firm, but the administrative ministry is yet to take a decision on it.

Interestingly, Handique during his visit to Orissa in March had assured that there was no proposal of dilution of government equity in Nalco. This is the third attempt by the Centre to sell its shares in the company in the last one decade. In 2002-03, the then NDA government at the Centre had decided to go for strategic disinvestment in Nalco. However, the move was dropped after vehement protest from different quarters.

Again, in 2005-06, the UPA government had initiated a process to sell its stake in the company, but it could not make much headway due to opposition of the then mines minister Sis Ram Ola.

Meanwhile, mines secretary, Santha Sheila Nair was quoted in media as saying that the Department of disinvestment had recently written the mines ministry to consider 10 percent divestment in Nalco. The ministry has forwarded the proposal to the company. Now, Nalco board will soon take a view on disinvestment. When contacted Nalco sources said, the date of the next board meeting is yet to be decided. Hence no agenda has been prepared in this connection.