The divestment department has proposed that public sector units involved in mining ores alone should qualify for 'natural asset' status while imposing additional norms concering employment of labour.
As per the draft guidelines submitted to finance ministry for approval, DoD has suggested that only those PSUs engaged
in mining for ores should be covered under the guidelines proposed to be finalised by the government, official sources
said.
The draft guidelines also state that government is considering imposing further conditions on new owners with regard to companies engaging labour from backward areas.
The department is in favour of tighter labour conditions for such companies as mining of ore is a labour intensive
process with a dearth of skill and few alternative employment oppurtunities prevailing in remote areas.
The guidelines form part of the sops announced by Divestment Minister Arun Shourie on December 9 as part of
package to push forward the privatisation process which was stalled in the backdrop of resistance from administrative
ministries.
Sources said the guidelines would also take care of problems faced by mining companies with regard to mining
leases as in the case of Balco.
The department aims to tide over these problems by specifying a minimum tenure for such leases,which would lend
a degree of comfort to prospective buyers. Asked whether Nalco would qualify for such status, the source remained non-commital, merely stating that the aluminium major whose divestment had been stalled in the face of resistance from employees as well as mines ministry was involved in other things as well.
Nalco incidentally processes bauxite ore from its mines at Damanjodi into alumina at its refineries before converting
it into aluminium.
Sources added that the guidelines would form part of a comprehensive package needed to ensure administrative
simplicity without creating inefficiencies and distortions.
They added that most of the guidelines would have to come from the finance ministry and are expected after the
completion of the ongoing Budget exercise.
