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Naveen Opposes Sale of Stakes in NALCO

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Chief Minister Naveen Patnaik
Chief Minister Naveen Patnaik

Chief Minister Naveen Patnaik
Chief Minister Naveen Patnaik
Bhubaneswar: The State Government has opposed the Centre’s decision to disinvest 12.15 per cent stakes in National Aluminium Company Limited (NALCO), the only central public sector undertaking (PSU) in the state.

Odisha Chief Minister Naveen Patnaik had said that there is no reason for disinvestment of NALCO, which is a profit-making Navratna Company.

The Centre has decided to reduce its equity from 87.15 per cent to 75 per cent in NALCO, which has its plants in Angul and Damanjodi in Odisha, to generate Rs 1,200 crore. It has also decided to reduce its stake in three other PSUs — Hindustan Copper, Oil India and MMTC.

Nalco Employees’ Central Union (NECU) has strongly opposed the decision and threatened that the decision may lead to violent agitation though out the state.

It is noteworthy to mention that, this is the fourth attempt by the Centre to scale down its stake. 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.

The Centre had mooted similar proposals in 2005 and in 2010. Last year, the company had made a profit of Rs 1,000 crore and gave a dividend of Rs 257 crore to its stakeholders.

Source: 360 NS