During Bajpayee government BALCO and Hindustan Zinc Limited was handed over to Vedanta Group through strategic sale. 51% in BALCO and more shares in HZL was sold at that time. Vedanta Group now wants all the shares to be purchased so that it will get control of all the assets of the company without any government control. The UPA government did not take any decision in the matter earlier. Such handing over will be against the interest of the nation and the workers. It should not be allowed.
Bharat Aluminium Company was one of the first central PSUs to be privatised. It was handed over to the Vedanta Group in 2,000 as part of the privatisation policy of the government, despite strong protest and strike by the employees. Now Government is having 49% share, but the entire management is only with the Vedanta Group.
Within 15 years, BALCO, which was the pride of the nation has gone down and is in loss. Already thousands of workers have been retrenched. There are still about 1,000 workers, whos future is in peril. The management states that the company is in loss due to non-demand of aluminium products and reduction in international prices.
All the unions in the BALCO has now approached the Prime Minister to help the company so that the workers do not lose their jobs. A detailed petition has been submitted signed by BMS, INTUC, CITU, AITUC and HMS.
Privatisation is not the panacea for all the ills that the PSUs are facing.
Bharat Aluminium Company(BALCO) management is proposing to close its Chhattisgarh plant shortly. It blames the closure on the increased price of coal and the loss in prices of aluminum.
BALCO was central government PSU, which was privatised and sold to Vedanta company. There was continued struggle by the workers against privatisation. Its main plant is in MP. More than 1,000 workers will lose job if the company is closed. The government should immediately intervene and save jobs of workers.
The CITU through a Press Release has strongly condemned the government move to sell the residual shares of BALCO and HZL, which will convert these PSUs in to private companies.
The Government has 29.5% share in HZL and 49% in BALCO. They are also cash rich PSUs. By privatising these PSUs, the government is handing over these profitable companies completely to the private.
We also strongly protest this action of the government and support the agitation of the workers in these PSUs.
The selling spree of PSUs by the Government continues at fast pace.
51% shares of BALCO and 65% of Hindustan Zinc have been sold to the Vedanta Group of Companies during the NDA period. there was sustained struggles against the sale of BALCO by its employees as also by the Central TUs. It was sold for a meagre amount of Rs. 551 crores to Sterlite ( which is now part of Vedanta), almost half of the market price. 65% of Hindustan Inc was sold for Rs. 750 crore in the same way.
Now the Government is proposing to completely sell the shares to the company and fully privatise. The Government expects to get about Rs. 20,000 crore through this sale. But that is doubtful since, it is a deal between the government and Vedanta and certainly the government will agree for lesser price.
It is not the question of the price alone. It is the question of handing over the nation’s wealth to private companies to maximise their profits. We strongly oppose the move to full sell the PSUs to the private.