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Differences weaken opposition to NALCO privatization
Wednesday, 11 September 2002, 19:30 IST
BHUBANESWAR: Political differences have weakened opposition in Orissa to a move by the central government to dilute its stake in NALCO, an aluminum company based in the state.
All the political parties of the state opposed the move, when the central government decided in July to reduce the government's equity stake in NALCO. Some leaders of the Bharatiya Janata Party (BJP) have also opposed the move.
According to the government's disinvestment plan, about 10 percent of the NALCO shares would first be sold in the domestic market. Another 20 percent would be offered to overseas investors in the second stage. In the third stage 29.15 percent of the shares would be sold to "strategic" buyers. Two percent of the equity would be reserved for NALCO employees.
The government's stake would come down from 87.15 to 26 percent after the disinvestment.
Initially, most parties and workers' unions barring the BJP were opposed to the move. Orissa chief minister Naveen Patnaik even demanded that a meeting of the National Democratic Alliance (NDA) be convened to review and discuss the matter.
His stand seems to have been weakened after Trilochan Kanungo, an MP from his Biju Janta Dal (BJD), supported the central government decision and said it would help NALCO become more profitable.
"The privatization of NALCO is required and the central government's decision is a move in the right direction. We should support this move," Kanungo had said.
Patnaik held the view that the privatization of Nalco would hurt the sentiments of the people of Orissa and that there was strong resentment against the move. He felt the decision would affect the popularity of his government.
Patnaik has conveyed his opposition to the NALCO disinvestment to Deputy Prime Minister L.K. Advani, Finance Minister Jaswant Singh, Defense Minister George Fernandes and Minister for Coal and Mines Uma Bharti.
Interestingly, the Congress party has decided to stage a demonstration in front of the NALCO headquarters here to protest the move on September 16. Other political parties have blamed the weak leadership of state's ruling Biju Janta Dal (BJD) and demanded its withdrawal from the NDA.
The 
24 billion NALCO is a key employment provider in Orissa, which has a population of 37 million. It is thus a sensitive issue. The company was set up in the state in 1981 to exploit its huge bauxite reserves. NALCO's exports totaled about 13 billion in the year ended March 2001.
The state BJP, a coalition partner of the Patnaik's BJD, has said it would support the central government's decision. "We support the move because it is in the greater interest of the country as a whole," state BJP chief Manmohan Samal said.
A legislator from Patnaik's party hailing from the region where the NALCO plant is located said on the condition of anonymity, "The decision of our party is suicidal. It will also affect the popularity of the BJP in the state."
"With differences emerging, the opposition to NALCO's privatization has weakened," Sudarsan Mohapatra, a political analyst, said.
Source: IANS
24 billion NALCO is a key employment provider in Orissa, which has a population of 37 million. It is thus a sensitive issue. The company was set up in the state in 1981 to exploit its huge bauxite reserves. NALCO's exports totaled about 13 billion in the year ended March 2001.
The state BJP, a coalition partner of the Patnaik's BJD, has said it would support the central government's decision. "We support the move because it is in the greater interest of the country as a whole," state BJP chief Manmohan Samal said.
A legislator from Patnaik's party hailing from the region where the NALCO plant is located said on the condition of anonymity, "The decision of our party is suicidal. It will also affect the popularity of the BJP in the state."
"With differences emerging, the opposition to NALCO's privatization has weakened," Sudarsan Mohapatra, a political analyst, said.
Source: IANS