Ministers, Left block Neyveli disinvestment

Cabinet decides to 'consider the matter together with Nalco disinvestment, whenever that might be'.

With the disinvestment of Neyveli Lignite Corporation (NLC) being blocked by some members of the Union Cabinet, and by the Left allies of the government, a quick resolution doesn't seem to be in sight.

At a Cabinet meeting held on Friday, the matter saw a heated debate, leading to the issue being put in abeyance. The Cabinet decision was to "consider the matter together with the disinvestment of Nalco, whenever that might be."

According to sources in the government, the first to oppose the disinvestment of the NLC was Health Minister Anbumani Ramadoss, who felt it was not justified.

He was joined by Sports Minister Mani Shankar Aiyar and Information and Broadcasting Minister Priya Ranjan Dasmunshi. Both argued that disinvestment at a time when the Left was already giving a hard time to the government on the petrol price hike issue would cause serious problems.

Finance Minister P Chidambaram argued in vain that NLC was a non-Navratna company. As the CMP barred the disinvestment of only Navratna companies, the Left was unlikely to object.

He argued that the disinvestment fund set up by the government for the use of revenue generated out of sale of government stake in PSU had "only loose change".

"What do you want me to do, shut down the department of disinvestment?" said an exasperated Chidambaram when his colleagues refused to give way.

At this, Mani Shankar Aiyar offered to absorb the bureaucrats who would lose their jobs in his ministry.

"The disinvestment of NLC, has been pending since before the Tamil Nadu elections, and will now be taken up together with Nalco. No time frame has been set for that," said a senior minister.

The Left parties were even more vehement in their opposition than the ministers.

"The government has not consulted us on it. Anyway, the question of consultation does not arise. How can they even propose disinvestment of a profit-making PSU. We are completely opposed to it," said Nilotpal Basu of the CPM.

CPI National Secretary D Raja said his party had made it clear long back that it would not accept disinvestment of NLC. "There is no change in our stance," he said.