The divestment ministry has decided to steer clear of the selloff in politically sensitive aluminium major Nalco till the big-ticket sale of petroleum companies Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd is completed.
"We do not want to upset the divestment process that was recently brought back on track by the Prime Minister. Divestment Minister Arun Shourie is in favour of completing a couple of big deals like HPCL and BPCL before tackling Nalco," a senior divestment ministry official said.
While the ministry is going ahead with the groundwork for the three stage divestment of Nalco, plant visits by prospective bidders would remain suspended for the time being, he said, adding that no new time-table had been drawn up for due diligence.
Due diligence had been stopped in early November after executives from AV Birla group company Hindalco and ABN Amro, the government's advisors on Nalco, were roughed up and prevented from entering the company's Angul plant.
Nalco divestment had hit rough weather with coal and mines minister Uma Bharti objecting to the timing of the three phases involving strategic sale of 29.15 per cent equity, domestic issue of 10 per cent and American Depository Receipt issue of 20 per cent.
The mines ministry was in favour of Nalco completing its ongoing expansion and modernisation plan before strategic sale.
The company has earmarked investment to the tune of Rs 900 crore (Rs 9 billion) during the current year itself in its mining, refining and smelting activities and two additional units of captive power plant.
Orissa chief minister Naveen Patnaik had also opposed divestment of the profit-making company saying that it had tremendous 'sentimental value' for the people of his state.
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