'FM-Vedanta ties influenced Nalco move'

The Centre for Indian Trade Unions (CITU), an affiliate of the CPM, today alleged that the decision to disinvest part of government stake in Nalco was influenced by Finance Minister P Chidambaram's relationship with Anil Agarwal-promoted metals company, Vedanta Resources.

"The finance minister was on the board of Vedanta... the disinvestment of stake in Nalco would benefit Vedanta group aluminium company Balco," an office-bearer of CITU said.

A statement released by the trade union said, "Earlier, disinvestment of 12.85 per cent of Nalco had led to grabbing of 1.15 per cent share by its competitor Hindalco and 2.19 per cent by foreign institutional investors. CITU apprehends the entry of FIIs, Hindalco and Sterlite Group through disinvestment process in Nalco."

The CITU said that despite strong opposition of the employees, trade unions and parties supporting the government, and even the mines ministry in the case of Nalco, finance ministry was pushing its own agenda.

It said the programme of resource mobilisation should not be conducted through the sale of assets but recovery of income tax and corporate tax arrears, which has reached Rs 1,17,000 crore.

"The finance minister should have followed his own precedent in dabhol case and reclused himself from the process of disinvestment in nalco," citu secretary dipankar mukherjee said.

He said the whole process looked odd since finance minister was on the board of vedanta.

Both CITU and CPI said they would launch an agitation against the "process of creeping privatisation" by the UPA government, egged on by the finance ministry.