Nalco sale lands in minefield

NEW DELHI: In what could strengthen the perception that the disinvestment debate within the Congress is far from settled, mines minister Sis Ram Ola, on Tuesday, introduced a rider to the proposal for divesting government equity in Nalco — the funds accrued from the process should be ploughed back into the company.

The mines minister has been opposing disinvestment ever since the proposal was placed on the table. It be recalled that the minister had gone public with his opposition when the proposal was mooted last year. He had said that his ministry was against “reducing the strength of profit-making PSUs.”

Mr Ola’s opposition is sure to encourage the Left leaders to demand a relook at the finance ministry’s stand. Only last week, the Left leaders, in a letter to the Prime Minister, had said that the disinvestment in profit-making enterprises was against the NCMP commitment. “Liberalisation and privatisation of the mining sector which is being pursued proactively by the the UPA is antithetical to national interest,” the letter signed by leaders of the four Left parties had said.

Talking to reporters after the mines minister’s announcement, CPM’s Sitaram Yechury said that the government should continue to control of Nalco. “The company’s profit has been increasing. Its potential has been growing and the government should not let go of benefits of this,” he said. He said his party has been opposing the move ever since the UPA government placed it on the disinvestment drawing board.

Government leadership, which is keen to dispel the impression of a policy paralysis, has been blaming the Left for its inability to act on important initiatives such as disinvestment. It may be mentioned that the prime ministerial secretariat had last week sent out an “enough-is-enough” message on behalf of its principal, and claimed that there could be forward movement in policy areas like disinvestment.

But the lack of consensus was on display when the proposal for divesting equity in Neyveli Lignite came up. When Anbumani Ramadoss opposed it, PR Dasmunshi and Mani Shankar Aiyar supported him.

This saw the prime minister putting the proposal on hold.

Given this backdrop, Mr Ola’s stand cannot but be distressing for the prime minister. That the Congress’ own ministers, who do not command large political armies, are opposing the disinvestment policy indicate that the party is not willing to take a position on the issue. And that’s not good news for the government.