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.

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