Left wants Navratna status for Nalco

Having stalled disinvestment of National Aluminium Company Ltd (Nalco), the Left parties have stepped up pressure on the UPA regime to grant it Navratna status to rule out future dilution of government stake.

CPI(M) MP Chittabrata Majumdar today urged Prime Minister Manmohan Singh to tell the department of public enterprises to confer Navratna status on Nalco, "In view of the UPA government's commitment to strengthen the autonomy of PSUs having the potential to become a global player."

According to Left's understanding with the UPA, the government cannot divest its stake in Navratna PSUs and can consider selling part-stakes in non-Navratnas only on a "case-by-case" basis.

Under Left and Congress pressure, the government had recently put disinvestment of Nalco on hold. The decision is, however, subject to revision in future.

CPI National Secretary D Raja demanded that the government grant Navratna status to Nalco without delay as it was a profit-making company.

"The government says it wants to divest a small percentage of shares. It is not a question of percentage. Our objection is to the disinvestment itself," he said.

In reply to a question from CPI(M) MPs in the Rajya Sabha, Ministry of Heavy Industries and Public Enterprises had on August 22, 2006, stated that the Ministry of Mines' proposal for Navratna status to Nalco was "under consideration."

The company had achieved the parameters for a Navratna status and had been approaching the government for this for the past three years, Majumdar said in letter to the prime minister.

"The company has scored more than 60 as per the parameters fixed for the purpose, a fact not denied by the minister of public enterprises. In spite of this, there has been an inexplicable delay on the part of the government in conferring the status," the MP said.