Balco: Disinvestment Story

Balco - The Disinvestment Story: Introduction
|In February 2001, the Government of India (GoI) struck its first |[pic][pic] |
|disinvestment deal in the fiscal 2000-01. It approved the sale of its 51% | |
|stake in aluminium major, Bharat Aluminium Co Ltd (Balco) to Sterlite | |
|Industries Ltd. (SIL), for Rs. 551.5 crores. Balco was a profit making public| |
|sector company under the Ministry of Mines (MoM). In 2000, it had a turnover | |
|of Rs.898 crores and a profit after tax of Rs. 56 crores. | |
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|Balco had two working units - an integrated Aluminium complex situated at | |
|Korba in Chhattisgarh and the second at Bidhanbag in West Bengal equipped to | |
|produce only on downstream facilities. Balco had a total workforce of 7,000. | |
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|The Opposition launched a massive attack accusing the BJP Government of | |
|'selling out' to private interests. Also, the Chattisgarh Chief Minister, | |
|Ajit Jogi, (Jogi) alleged a Rs. 100 crore kickback in the sale involving key | |
|officials. Jogi also threatened to cancel the bauxite mining and land lease |