New Delhi, Feb 12: Public sector aluminium major Bharat Alumiuim Company (Balco) has approached the government to allow it to retain its office premises after privatisation, even as the Standing Conference on Public Sector Enterprises (SCOPE) has refused it permission to do so.SCOPE authorities have argued that it would not bepossible for BALCO, which is now lodged in SCOPE building, to continue to occupy the premises after the sale of the company as it would no longer retain its public sector status, official sources said.
Government has decided to divest 51 per cent equity in the aluminium major to a strategic partner. It has mandated Jardine Fleming to act as the global advisor for the sale.
Three bidders including the Birla-promoted Hindalco, international aluminium giant Alcoa and Sterlite Industries are in the fray for the stake.
As per the terms of lease between SCOPE and Balco, the company cannot transfer, alienate or part with real estate in favour of any person, body or entity without prior permission of the SCOPE authorities and the government.
SCOPE building is an exclusive office complex of public enterprises, with SCOPE being the lessee and the PSU's being the sub lessees. The company has, however, paid the full amount towards the cost of construction and land.
SCOPE authorities have argued that the government exercises the first right of purchasing the premises from Balco and compensate the company.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
