No privatisation of Nalco, PM tells Left

Prime Minister Manmohan Singh today told Left leaders that "privatisation and disinvestment cannot be equated", thereby leaving the window open for the government to lodge funds from the sale of profit-making PSUs in the National Investment Fund, as it did in the case of Bharat Heavy Electricals Ltd (Bhel).

However, the Prime Minister also assured the Left leaders that the National Aluminium Company (Nalco) would not be "privatised".

The meeting was attended by the central and Orissa unit leaders of the CPI(M) and the CPI. Members of the Orissa Gana Parishad (OGP) and the Janata Dal (S) also attended the meeting.

"We discussed three issues with the Prime Minister. The first was regarding deal between the Orissa government and the Korean Company Posco, the second was about the government's plans to disinvest a 20 per cent stake in Nalco and third regarding e-bidding facility extended by the government, which makes it difficult for small businessmen to compete with big multinational corporations," Yechury said after the meeting.

The four Left parties also presented a letter to the Prime Minister in which they "sought an early meeting of the UPA government and the Left co-ordination committee" to discuss the Left's opposition to the 10 per cent disinvestment in Bhel and "privatisation" of other PSUs such as Nalco.

The Prime Minister's statement today comes in the wake of growing opposition to the "disinvestment" in profitable PSUs from within the government. Petroleum Minister Mani Shankar Aiyar has written to the Prime Minister asking the government not to privatise even mildly profitable PSUs.

Regarding the deal between the Orissa government and Posco, the Left argued the South Korean company was seeking the raw material required for a steel pant of 12 million tonnes capacity, whereas the plant to be put up immediately would only be of 3 million tonnes capacity.

"It costs Rs 400 for the extraction of a ton of iron ore, however, the same ore is sold in the international market for anything between Rs 2000-3000. Posco will then try to export iron ore from India. We are opposed to the export of India's mineral resources," Yechury said.

The Left parties and the opposition parties in Orissa also presented a memorandum to the Prime Minister regarding the Posco deal. The memorandum opposes the state government leasing mines in Orissa to Posco under the existing laws of foreign direct investment in mining.

It states that Posco is asking 1,000 million tons of ore body, which is equivalent to 30 per cent of total Orissa deposits.

The Prime Minister is said to have assured the delegation that he would examine the various aspects to the case as put before him.

The Orissa government and Posco are scheduled to sign a memorandum of understanding on June 22.