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Govt to sell 51% BALCO pie to Sterlite

Onkar Singh in New Delhi

The Union Cabinet on Wednesday approved the divestment of Bharat Aluminium Company (BALCO) to the tune of 51 per cent to the Sterlite group.

The deal will fetch the Government of India a total amount of Rs 8 billion, even as it retains 49 per cent holding in the company.

The government had earlier reduced its holding to 50 per cent, but the employees went to the Delhi high court challenging the decision.

However, the court dismissed the employees' petition and allowed the government to offload its holding.

Briefing the newsmen the Union Minister for Divestment, Arun Shourie, said, "In the agreement there would be no retrenchment of the employees for a period of one year by the new management. Later, if the management feels that retrenchment has to be done then they have to offer a voluntary retirement scheme which is now being offered to BALCO employees."

"The final agreement will be signed on Monday when the company will hand over a cheque of Rs 5.515 billion to the Union government. The company has already made a payment of over Rs 2.40 billion to the government earlier and also paid tax on it to the tune of Rs 300 million. Thus, Sterilite would pay Rs 8 billion to the government for this deal."

The ministry of divestment will send all the documents to the Comptroller and Auditor General of India to scrutinise the deal so that if there are any lacunae, the same could be ironed out.

"We are following the system adopted by the Australians. Every deal is scrutinised by the CAG of Australia to maintain transparency in financial deals," Shourie said.

SEE ALSO:

Hindalco, Alcoa to jointly bid for Balco

India to invite bids for Balco next week

CCD in principle decides to sell majority shares of 10 more PSUs

India invites bids for BALCO sell-off

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