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Bar Birlas from bidding for Nalco, SJM to govt

Swadeshi Jagaran Manch, a Sangh Parivar outfit, demanded on Wednesday that the Birla Group be barred from bidding for National Aluminium Company as their acquistion would create a monopoly.

"The government should not create monopolies by its act. We are not against strategic sale of Nalco provided the Birlas are barred from bidding," Swadeshi Jagaran Manch convenor S Gurumurthy said in New Delhi.

A V Birla Group's Hindalco is among the companies, which have put in initial expression of interest for acquiring the government's 29.15 per cent stake in Nalco.

Acquisition of Nalco by the Birlas would create a monopoly, he said, adding strategic sale per se was not wrong but should certainly not be applied in sectors of strategic importance and should not lead to creation of monopoly.

Asked what sectors of economy according to Swadeshi Jagaran Manch were strategic, Gurumurthy said petroleum sector was crucial to nation's oil security needs and oil PSUs should not be privatised.

"I am happy that privatisation of Bharat Petroleum and Hindustan Petroleum has been deferred. I would like to prevail on the government to completely shelve strategic sale in the two PSUs," he said while stating that his organisation was for public offering of shares in BPCL and HPCL.

"Public offer should be the most preferred option for the government for divesting its stake," he added.

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