CITU Against Handing Over Of Govt Equity In BALCO

The Centre of Indian Trade Unions (CITU) has strongly opposed the reported handing over of the balance 49 per cent government equity in Bharat Aluminum Company (BALCO) to M/s Sterlite. In a letter to the union finance minister, P Chidambaram on June 8, the CITU all India president, M K Pandhe, demanded that before any final decision is taken in this matter the entire issue must be discussed with the trade unions. As is known, the CITU had objected to the deal by the NDA government, which favoured M/s Sterlite.

The full text of letter given below:

IT has been reported in the press that M/s Sterlite has claimed the handing over of 49 per cent of equity held by the government in BALCO as per agreement signed with the NDA government. This company was sold by the government of India by offloading its 51 per cent of the equity shares for a pittance of Rs 551 crore.

The deal between the previous government and M/s Sterlite was discussed in parliament and it was pointed out that the assets of BALCO were highly undervalued to favour a private sector company. Several constituents of UPA had strongly criticised the shady deal in parliament and demanded enquiry in the matter. However, the NDA government did not pay any heed to the just demand.

It was reported in the press that the enquiry made by the prime minister’s office had criticised the manner in which M/s Sterlite had dealt with the problem of the employees. All the trade unions complained about the violation of the commitments given M/s Sterlite to the workers prior to the selling of shares to the company.

Moreover, the CAG report on the shady BALCO deal has not yet been placed in the parliament.  It has been reported in the press that M/s Sterlite was blacklisted by SEBI for some period.

The CITU therefore requests the finance minister not to sell the balance of the government holding to M/s Sterlite and undertake a through probe into the shady deal between the NDA government and M/s Sterlite.

In view of the above we request you to have a discussion with the representatives of BALCO unions along with representatives of central trade unions before taking any further steps in the matter.

We hope you will view this matter with concern and take suitable steps so that a thorough probe into the deal by the NDA government is made with any further delay.