PMO stops Nalco bidders from undertaking due diligence

NALCO privatisation process came under a cloud with Mines Minister and BJP leader Uma Bharati going on record that she had some reservations about it and she would take up her Ministry’s point of view with the Prime Minister.

Bharati met Prime Minister last week within days of a team of AV Birla group’s Hindalco, one of the 15 bidders, was roughed up in Orissa by some Congress activists and NALCO workers when it came for due diligence exercise. Immediately after the incident, the Disinvestment Ministry had put a temporary halt on the due diligence process for going into the reasons for incidents after it received complaints from Hindalco director, A K Agarwala that his team was not provided adequate safety.

While officials were not available for comments, sources close to the privatisation process said that Disinvestment Ministry was ready to resume the due diligence exercise saying that it could do it successfully in Balco, whose privatisation was challenged by none other than the Chattisgarh Chief Minister.

Sources said safety measures could be put in place and the exercise could be completed for possibly calling for financial bids by January-February. In case the exercise was delayed, the sources pointed out that the NALCO privatisation might not be complete during the current financial year.