Govt invites bids for privatisation of BALCO

Govt invites bids for privatisation of BALCO
AGENCIES

New Delhi, June 15: Government today invited bids from strategic partners for sale of 51 per cent stake along with management control of the second largest public sector aluminium company, Bharat Aluminium Company Ltd (BALCO).

Commission said the government should bring down its holding to 26 per cent within two years through a public issue in the domestic market.

Privatisation of BALCO is likely to raise lot of interest in view of the consolidation efforts in the aluminium sector in the country.

Recently, A V Birla group company HINDALCO had acquired majority stake in Indian Aluminium Co (INDAL) from its Canadian promoter ALCAN.

HINDALCO, along with state-owned National Aluminium Company Ltd (NALCO) and BALCO and INDAL are the largest players in the aluminium sector in the country.

BALCO, which has two units in Korba and Bidhanbag, is vertically integrated from sourcing of bauxite from its captive mines, refining and smelting to producing aluminium and a variety of semi-finished products.

The Korba unit in Madhya Pradesh has a 200,000 tonne per annum alumina plant and a 100,000 tonne per annum smelter, while Bidhanbag is a downstream fabrication facility.

BALCO had recorded a turnover of Rs 923.7 crore in 1998-99 and a net profit of Rs 76.3 crore.