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Balco talks end in a stalemate; unions go back to Korba

The talks between the striking unions and the Centre to resolve the Balco imbroglio ended in a virtual stalemate on Monday with the government turning down the demand for change in equity pattern of the company, where it sold 51 per cent (equity) to Sterlite Industries.

"Mines Minister Sunderlal Patwa refused to budge an inch on the privatisation issue. We are going back to Korba (Chhattisgarh) to chalk out future plan of action," Baleshwar Jha, convenor of Balco Bachao Samyukta Abhiyan Samitie (a co-ordination committee of seven unions), after emerging from the meeting said.

"Unions will be willing to resume negotiations with the Centre if they are willing to accede to our demands," he said adding that unions had given three options to resolve the crisis following privatisation of the aluminium giant on March 2 triggering an indefinite workers' strike.

During the tripartite talks held at Patwa's residence since Sunday, the unions took the stand that government should either reverse the sale deal of March 2 or peg the strategic partner's equity at 49 per cent or allow transfer of 51 per cent equity to Chhattisgarh to make Balco a joint venture between the Centre and the state.

Jha said that Patwa told them that he was not in a position to reverse the government's decision.

Chhattisgarh Industry Minister Mahendra Karma along with other central and state government officials was present during the talks, initiated by Patwa on the request of Chief Minister Ajit Jogi and the unions to resolve the impasse.

Balco unions also suggested that 50 per cent of the shares may be retained by the Centre, 40 per cent with the investor and 10 per cent with the employees.

Alternatively, if the Centre chose not to retain 50 per cent then it should accept Chhattisgarh's offer of buying 51 per cent equity for Rs 5.52 billion, Jha said.

When contacted, Balco managing director S C Krishnan declined to comment, stating that he was yet to receive any information on the outcome of the meeting.

"I cannot comment on the issue, let me find out from my people as to what transpired at the meeting," Krishnan said.

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