MoF, mines ministry spat over Nalco

However, Ola on Friday said he was against the proposal as Nalco was performing well and there was need to add more strength to the company which made highest ever net profit of Rs 1222.43 crore in fiscal 2004-05.

Nalco CMD C.R. Pradhan also echoed similar views saying ‘‘given a choice we will not favour disinvestment. The company is performing very well and it should be allowed to grow on its own.’’

‘‘As far as further expansion is concerned, we can generate resources. It will not be a problem,’’ he added.

The mines ministry has so far not responded to the letter and has hinted at expressing its opposition to it. ‘‘Every ministry is entitled to have it own views on a particular matter. The finance ministry supports disinvestment but we do not agree. We have so far not responded to it but when we do so, we will express our opninion against it,’’ Ola said.

‘‘We do not want to reduce Nalco’s strength and we will try that disinvestment in the company does not take place,’’ the minister added.

Nalco posted its highest ever net profit at Rs 1222.43 crore in the fiscal year 2004-05, an impressive 66 per cent growth over the previous year figure of Rs 737.37 crore, Ola said.

Shares of Nalco witnessed a high level of activity on Friday after reports that the finance ministry has written to the mines ministry favouring 20 per cent divestment in the company. The government currently holds 87.15 per cent in Nalco.

On the BSE, the stock gained 3.72 per cent or Rs 5.25 to end the day at Rs 146.50. The stock opened the day at Rs 140.50 and touched a high and low of Rs 148.90 and Rs 140.05, respectively during intra-day trades. A total of 1.21 lakh shares were traded on BSE, compared with its 2-week average of 1.39 lakh shares. On the NSE, Nalco moved up by 3.79 per cent or Rs 5.35 to end the day at Rs 146.50. The stock touched an intra-day high of Rs 148.90 on Friday.