In a first,Mines Minister rejects Nalco stake sale proposal

B K Handique has shot down a proposal by the FinMin that sought 10 pct disinvestment in state-owned aluminium giant Nalco.

In the first such rejection by any ministry,Union Mines Minister B K Handique has shot down a proposal by the Finance Ministry that sought 10 per cent or more disinvestment in state-owned aluminium giant Nalco. The government holds 87.15 per cent in the navratna company that earned profits of Rs 1,272 crore on a turnover of Rs 5,531 crore in 2008-09.

The Nalco board that considered the Department of Disinvestments proposal to offload 10 per cent stake in the company felt there was no need for stake sale now.

My ministry has concurred with the boards views and we have conveyed the same to the DoD. Nalco does not need funds since it has cash reserves of about Rs 4,300 crore. Hence,we do not favour disinvestment, Handique told The Indian Express.

Story continues below this ad

While it is true that Nalco is cash-rich,official sources said that politically too,it was getting difficult for the UPA government to push through disinvestment with strong opposition by Orissa that is governed by the BJD. Nalco is headquartered in Bhubaneswar and all its plants are located in the state. Most political parties the BJP,CPM,CPI have threatened to launch state-wide agitation if the Nalco stake sale is pursued.

Handique is,however,open to considering stake sale in another PSU Hindustan Copper Limited (HCL) under his ministry. His ministry has decided to sell 20 per cent equity in HCL,the BSE-listed mini-ratna giant. This will help the government raise Rs 3,000 crore. The follow-on public offer will see the government selling 10 per cent of its own stake and the company issuing fresh shares of another 10 per cent.

The Centre has identified about 60 PSUs for listing or re-listing on the bourses. It has already executed FPOs of National Mineral Development Corporation,NTPC besides clearing the FPO of SAIL. It has targeted raising Rs 40,000 crore through disinvestment in 2010-11 for funding its ambitious social agenda.

Tags:
NALCO

‘Double bonanza for poor, middle class’: PM’s swadeshi pitch ahead of new GST roll out

India6 hr ago

PM Modi announced the rollout of new GST rates, calling it a "GST bachat utsav" and promising cheaper prices for medicines, insurance, and daily essentials. He emphasized that these reforms would ease doing business, attract investment, and benefit the poor, middle class, MSMEs, farmers, women, traders, and youth. He urged citizens to promote swadeshi goods.

View all shorts

Live Blog