leaders of various trade unions and political parties have strongly opposed the recent move of the Union Government to insist on the Nalco to buy back 25 per cent of its shares from the Government worth Rs3,250 crore ($481 million).
The Finance Ministry has asked the Mines Ministry in this regard. The Nalco has already agreed to buy back 10 per cent and their board will now decide whether to purchase more. Nalco Employees’ Sangha general secretary NK Samal informed this quoting Mines Secretary Balvinder Kumar.
He said the present move of the Union Government would not only jeopardise the prospect of the expansion projects, but also weaken the financial strength, and even threaten its existence.
During the recent visits of the Union PNG Minister and Tribal Affairs Minister, the trade union NES had submitted a memorandum to them opposing any move for disinvestment/ buyback programme of the Government. The Union emphasised on expansion of CPP and Smelter projects along with full capacity utilisation. However, contrary to their aspiration and demands, the Government is insisting of taking Rs3,250 crore rupees from Nalco.
He demanded immediate rollback of the buyback proposal of the Government and suggested to the Nalco Board to oppose the move for interest of the company.
The buyback proposal has also been opposed by Citizen Action Forum president RP Patanaik. “It will drain reserves at a time the aluminium market is reeling. This is a prelude to the privatisation of the aluminium maker in a manner similar to the sale of Balco to Vedanta during the previous NDA regime,” he opined.