The Hindu : Business : AITUC chief meets PM on Balco issue

Online edition of India's National Newspaper
Saturday, Jun 12, 2004

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Business

AITUC chief meets PM on Balco issue

By Our Staff Correspondent

NEW DELHI, JUNE 11. The Prime Minister, Manmohan Singh, is said to have promised the trade unions to `look into' the Government's proposal to sell off the remaining 49 per cent equity of Bharat Aluminium Company (Balco) to Sterlite Industries.

The assurance from Mr. Singh came when the All India Trade Union Congress (AITUC) general secretary, Gurudas Das Gupta, met him here to oppose the proposed sale. It is reported that Sterlite Industries has served a call notice to the Government to buy out the remaining equity. "We oppose the sale of the government equity in Balco to Sterlite Industries as that is not in the national and workers interest,'' Mr. Das Gupta said.

The previous NDA Government had sold off 51 per cent equity of Balco to Sterlite in March 2001 for Rs. 551 crores despite nationwide protests against the move. . "Balco was a profit-making unit and produced a special quality of aluminium for defence and space related work. After the sale, the new management had thrown out more than 50 per cent of the workforce and closed several mines. Employees were forced to take voluntary retirement scheme (VRS) but payments have not been made,'' Mr. Das Gupta said in a memorandum submitted to the Prime Minister. He asked the Prime Minister to review the sale agreement with Sterlite.

The Centre of Indian Trade Unions (CITU) has also strongly opposed the reported handing over of 49 per cent equity of Balco to Sterlite. In a letter addressed to the Union Finance Minister, P. Chidambaram, the CITU has asked the Ministry to discuss the entire issue with the trade unions before taking any final decision in this manner.

Pointing out that the CAG report on the `shady deal' on Balco has not yet been placed in Parliament, the CITU asked the Finance Minister to undertake a thorough probe into the agreement between the NDA Government and Sterlite. "In view of the developments, 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,'' the CITU president, M. K. Pandhe, said in the letter.

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