Various trade unions and employees’ associations under the banner of the Nalco Coordination Committee have opposed the Union Government’s move to sell 10 per cent stake of the Navaratna company Nalco in the stock exchanges.
The Government has put stakes on sale for both institutional buyers and retail investors to meet its ambitious Rs 72,500 crore disinvestment plan for 2017-18. It expects to raise Rs 1,300 crore out of Nalco stake sale.
The Central PSU would sell upto 9.66 crore equity, which is 10 per cent of Governemnt stakes, through the offer for sale (OFS) route. When the sale is completed, the Government’s percentage of share in Nalco will be reduced from 74.58 per cent to 64.58 per cent.
The Government is doing disinvestment under the plea to spend more on infrastructure and social schemes while cutting the fiscal deficit to 3.2 per cent of GDP in 2017-18, from 3.5 per cent last year. The members of Nalco Coordination Committee are now protesting against the stake sale move at the Smelter and CPP Plant, Angul arguing that Nalco would be financially weakened following disinvestment and would open scope for privatisation.
“The Nalco’s expansion projects will be affected by disinvestment,” said INTUC leader Nirmal Samal. Meanwhile, Chief Minister Naveen Patnaik has opposed the move.
Recently, the Environment Ministry has given environment clearance for the third phase expansion of the Nalco in Odisha .The estimated cost of the proposed expansion project is Rs 4,357.20 crore. With the proposed expansion, the Nalco’s alumina production capacity would increase from 2.27 MTPA to 3.27 MTPA, while SPP capacity will expand from 92.5 MW to 111 MW.