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Chhattisgarh tells SC it is ready to pay Rs 5.52 bn for Balco

The Chhattisgarh government has sworn before the Supreme Court that it was ready to pay up Rs 5.52 billion to buy 51 per cent equity share in Bharat Aluminium Company, which was sold to Sterlite Industries Ltd for Rs 5.51 billion.

Filing its affidavit challenging the divestment in the company, the state government accused the Centre of taking the decision in an arbitrary manner without consulting it at any stage.

"The manner in which the decision of divestment in relation to a profit making company, which is engaged in production of alloys required for strategic defense purposes, has been made, is completely non-transparent, unfair and unreasonable," the Chhattisgarh government said.

Accusing the Centre of "grossly undervaluing" the assets of the company, the state government said, "There is a captive power plant of 275 MW worth approximately Rs 12 billion, 2000 acres of land, mining leases, 4000 houses besides the valuable plant and machinery and scrap."

"Therefore, if the union government is committed to maintain transparency in the process, the state government is prepared and hereby offers to pay Rs 5.52 billion and buy the 51 per cent equity share in the company which has been sold out to Sterlite Industries for Rs 5.51billion," the secretary, commerce and industries, rural industries and PSUs, Government of Chhattisgarh, said in a sworn affidavit.

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