'Sell-offs musn't create monopolies'

NEW DELHI: Despite reports of bidders pulling out of Nalco disinvestment process due to continuing uncertainty over a collective government decision on the matter and difficulties in conducting due diligence of the PSU’s facilities, coal and mines minister Uma Bharti on Tuesday reaffirmed her view that disinvestment, though an “economically important� proposition, should not lead to a private monopoly.
“I’m not against disinvestment per se. Privatisation is definitely in the interest of the economy. But, public participation has to be ensured in the process and no monopoly shall be created as a result,� she said, after receiving a dividend cheque of Rs 224.6 crore for the year 2001-02 from Nalco CMD C Venkataramana.
On whether the control should remain with the government after such “privatisation�, the minister gave an evasive reply, indicating that she would prefer public offering of chunk of Nalco equity shares, to the strategic sale route — without government ceding control. There could be a middle path where you have both private owned companies and PSUs, she said.
Asked what exactly were her differences with the disinvestment ministry on Nalco, the minister said she had made them clear to the prime minister and the deputy prime minister and was not for airing them outside appropriate fora.
“I’m representing people in the government, not government among the people. I will never disclose my views on (such policy matters) to the public,� Ms Bharti said, adding it was for the PM to take a final decision on Nalco disinvestment. The PM had been apprised of the feelings of the people of Orissa by chief minister Navin Patnaik.
Ms Bharati said, there is nothing wrong in expressing ones views. Nobody would issue threats for having a view on disinvestment or for that matter any other subject. The UK, which had carried out disinvestment of postal department under Ms Thacher as early as in 1971, is assessing how successful that project had been.
Globally, the aluminium industry is passing through one of the worst recessions ever. The industry would possibly see a turnaround in 6-7 months and Nalco as a low cost producer of the metal would therefore be able to increase its profitability, the minister said.