With political temperatures in Odisha rising against the disinvestment of National Aluminium Company (NAlCO), and with even certain sections of the Congress party in the state also joining the protests against the move led mainly by the ruling Biju Janata Dal (BJD) as well as the BJP - the Government, it is reliably learnt, has decided to divest only 5 per cent of its share in the company instead of the original 12.15 per cent.
In addition to 5 per cent divestment, sources further said that the Government has decided to go in for an additional 5 per cent green shoe option. This means that if NAlCO's shares are still in demand after divestment of 5 per cent Government's share in the company, then Centre would allow accommodation of up to 5 per cent of such extra subscription.
According to official sources, the watered down stake sale, which is likely to hit the markets on March 15 is going to bring around only Rs 500 crore instead of Rs 1,500 crore which the Government would have originally got, had it gone in for 12.15 per cent stake sale. Even the 5 per cent extra through the green shoe option too may not bring in anything near the original amount, they added.
In a meeting held on Wednesday of the empowered Group of Ministers (eGoM) on Disinvestment headed by Finance Minister P Chidambaram, a decision was taken to start the offer for sale (OFS) of NAlCO on Friday (March 15) for offloading 12.15 per cent of Government's share in it and even the share price was discussed, though it was not revealed.
Sources informed The Pioneer that the watered down stake sale is directly co-related to prolonged opposition in Odisha against Centre's move to divest its share in NAlCO.
The BJD has been protesting against the move since the past six months and several agitations and rallies have been held in various parts of Odisha regarding this. Sources close to the development in fact told this correspondent that while the BJP which is in the opposition in the state, too has joined hands with the BJD on the matter, a section of the Congress also has been lending tacit support to the ruling party.
A senior BJD MP said that the party is primarily of the view that Centre should not divest its stake in cash-rich public sector companies which have been generating profits for it. NAlCO, the leader said, is one such entity.
"Divesting stake in such cash surplus companies (referring to NAlCO) is like selling the family silver," the leader said.
While protests in Odisha have been raging since quite some time, in the last couple of months, they have picked up steam and this, sources said, may have compelled the Government to go in for a lesser stake sale.
In fact official sources had indicated that the Mines Ministry in consultation with the Finance Ministry was even mulling the share buy-back option in NAlCO, but ultimately went for a lesser stake sale along with the green shoe option.
The reduced returns from the watered down stake sale in NAlCO may not help the Government in achieving its Rs 30,000 crore disinvestment target for the current fiscal, out of which it has till now garnered Rs 21,500 crore.