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'PM to decide on Nalco'

BS Economy Bureau in New Delhi

Coal and Mines Minister Uma Bharti reiterated on Tuesday that off-loading government equity in favour of the general public was the best route for divestment of National Aluminium Company and said that Prime Minister Atal Bihari Vajpayee would take a final decision on the issue.

"I have conveyed my views (on Nalco divestment) to the Prime Minister and Deputy Prime Minister. The decision has been left on them," Bharti said after accepting a dividend cheque for Rs 224.59 crore (Rs 2.25 billion) from the aluminium major in which the government owns over 95 per cent equity.

The minister said that she had held discussions with senior leaders but declined to give details saying, "I will air my views at the appropriate forum."

But the minister made her views on the subject clear by saying that the government should ensure greater public participation in divestment to ensure that the "process benefited the public at large".

Asked about the suspension of the due diligence process due to resistance by Nalco workers, Bharti said it was for the ministry of divestment to say when the process would resume.

"As I understand, there was no man-handling of anyone. Workers only prevented entry of executives of a private company into factory premises."

Divestment secretary Pradip Baijal said that the ministry was trying to get the process of due diligence started soon.

Due diligence had been stopped last month after a group of executives from Hindalco and ABN Amro, the government's advisors on Nalco, were prevented from entering the company's Angul plant.

Suspension of the due-diligence effectively meant a halt to the entire three-phase divestment in the company that involves a strategic sale of 29.15 per cent, American Depository Receipt issue of 20 per cent and a domestic public issue of 10 per cent to bring down the government holding in the company to 26 per cent.

Meanwhile, Nalco declared on Tuesday a divided of 40 per cent for the year 2001-02 on the paid up capital of Rs 644.31 crore (Rs 6.44 billion).

The total dividend outgo on the company works out to Rs 257.72 crore (Rs 2.58 billion), which is 62.95 per cent of the net profit, company chairman and managing director C Venkataramana said.

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