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Nalco valuation smacks of major scam: Patnaik

Hitting out at the Vajpayee government for its bid to privatise the profit-making National Alluminium Company, former Orissa Chief Minister J B Patnaik said on Friday that the company's valuation at half its worth smacked of a major scam.

Asking Prime Minister Atal Bihari Vajpayee to reverse the decision, the veteran Congress leader said: "It is surprising that Nalco has been valuated at Rs 2928 crore (Rs 29.28 billion) while it should be Rs 6108 crore (Rs 61.08 billion) as the company was established at a cost of Rs 2408 crore (Rs 24.08 billion) and its expansion cost is Rs 3700 crore (Rs 37 billion)".

"The government has no convincing reason for the low valuation. The whole exercise smacks of a big scam and underhand dealings", he said, adding that the Congress in Orissa would launch a massive agitation to foil Centre's bid to "totally eliminate public sector industries".

After expansion, Nalco's annual turnover would cross Rs 3500 crore (Rs 35 billion) with net profit in the range of Rs 1000 crore (Rs 10 billion) per annum, Patnaik said describing the company as the cheapest aluminium producer in the world.

"Since its inception, the company has made profits every year and if the last eight years are taken into consideration, its annual profit is Rs 500 crore (Rs 5 billion) on an average", he said.

Assailing Biju Janata Dal leader and Chief Minister Naveen Patnaik for "failing" to mount pressure on the Centre to stop Nalco privatisation, he said Coal and Mines Minister Uma Bharati and many others in the Bharatiya Janata Party have opposed its divestment but Orissa's ruling BJD is silent on the issue.

Regarded as the flagship of public sector enterprises, Nalco is not a company to be spoon-fed by the government and its expansion plan is internally funded.

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