Cabinet approves disinvestment of NALCO and NLC

The Cabinet Committee of Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh and Finance Minister P Chidambaram approved a 10% disinvestment of stake in National Aluminum Company (NALCO) and Neyveli Lignite Corporation (NLC). At current market prices that will fetch Rs 1400 crore for NALCO and Rs 1100 crore for NLC. This approval marks a renewed push of the disinvestment policy of the Congress led UPA Government.

Earlier similar disinvestment announcements by the UPA Government had to be be shelved because of strong protests by the Left Parties. The Left Parties are likely to be outraged by this announcement since the Congress had vowed to review its disinvestment policy. So until this approval by the Union Cabinet gets to be implemented on the ground, we should treat this announcement with a little bit scepticism.

[Update] As expected this move by the Union Cabinet was met with severe protests by Congress’ allies like the Left, and DMK. Tamil Nadu Chief Minister Karunanidhi lashed out at the Government’s decision to sell 10% stake at NLC.

Jaya talks about 3rd front

ADMK chief Jayalalitha indicated yesterday that her party was willing to support a 3rd front at the centre as an alternative to the UPA and NDA during the next Lok Sabha election. Given that Congress and the DMK now enjoy a cordial relationship at the Centre, and given the fact that any alliance with the BJP in the state is viewed unfavorably by large sections of the people of TN, Jayalalitha has no other option but to join a 3rd front.

Already TDP's Chandrababu Naidu, SP's Mulayam Singh Yadav, NCP's Sharad Yadav, and Left Parties have been trying to forge some kind of an alliance against the UPA and NDA during the next Lok Sabha election. Now with Jayalalitha throwing her weight behind such a formation, it is likely to spur renewed interest. Jayalalitha might also be eyeing an alliance with the Left parties in the state which will help consolidate her alliance.