BALCO employees allege irregularities in disinvestment

NEW DELHI, FEB. 26. The BALCO Employees Union (BEU) has alleged irregularities in the bidding process followed by the Government in awarding Sterlite Industries strategic partnership of BALCO.

In a representation to Members of Parliament, the union alleged that the gaps existing in the bids submitted by Sterlite and HINDALCO offered a criteria to cancel the bids as there were only two parties left for consideration.

It further said HINDALCO's bid was submitted only for purpose of supporting Sterlite's bid and was totally unrealistic.

It has also criticised Government's move to review the Disinvestment Commission's recommendation on a letter from the former chairman, Mr. G. V. Ramakrishna, stating that the views were personal and did not reflect those of the Commission.

The Comptroller and Auditor General (CAG) should have been involved in the whole process from the time the bids were opened, it said.

It has criticised the Disinvestment Minister, Mr. Arun Shourie's statement claiming that disinvestment process assumed a sense of urgency on account of BALCO's declining profits stating that it was misleading.

The drop in profit before tax (PBT) is mainly on account of breakdown of one of the units of captive power plants resulting in the outflow of huge amount as the power had to be purchased from Maharashtra State Electricity Board at a high cost.

- PTI

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