Chattisgarh ready to pay Rs. 552 cr. for BALCO shares

By Our Legal Correspondent

NEW DELHI, APRIL 5. The Chattisgarh Government has told the Supreme Court that the Centre had grossly undervalued the assets of the Bharat Aluminium Company (BALCO) while disinvesting 51 per cent of the shares in favour of Sterlite Industries Ltd. for Rs. 551.50 crores.

In its reply to the Centre's application seeking directions for the safety of the management and protection to willing workers and for supply of electricity and water to the plant, the State Government expressed its willingness to pay Rs. 552 crores for buying the 51 per cent shares.

The apex court, had, on March 12, while directing the State Chief Secretary and the DGP to ensure that workers and the management were not in any way intimidated or prevented from willingly going to work, asked the State Government to file its response.

The Chattisgarh Government said the manner in which the decision of disinvesting in a profit-making company, engaged in production of alloys required for strategic defence purposes, had been made was non-transparent, unfair and unreasonable. It faulted the Centre for keeping the State Government in the dark, saying it had not been consulted at any stage.

Explaining how undervaluation had been made, the affidavit pointed out that the captive power plant of 275 mw alone was worth about Rs. 1,200 crores, apart from 2,000 acres of land, mining leases, 4,000 houses and valuable plant and machinery.

Notwithstanding the fact that Sterlite Industries had already paid Rs. 551.50 crores to the Centre, the Chattisgarh Government was ready to offer Rs. 552 crores to buy back the shares.

The State Government was not responsible for the strike in the plant. It was the result of the authorities' failure to gain the confidence of the workers.

The apex court will take up the case for further hearing on April 9.

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Section  : Other States
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