SC upholds govt decision on Balco
By Our Corporate Bureau | 10 Dec 2001
New Delhi: The Supreme Court has upheld the government's decision on Bharat Aluminium Company (Balco) divestment.
The apex court on 10 December also ruled that it is not for the courts to consider the merits of government economic policies and that the parliament was the proper forum. The SC was ruling on a petition filed by the Chattisgarh state government where Balco's smelter plant is located that challenged the decision by the government in February 2001 to sell a 51-per cent stake in the company.
The Rs 5.51-billion sale of Balco to Sterlite Industries marked the country's first major privatisation in a decade of economic reforms. "We hold that the divestment policy [regarding Balco] is not invalid," the SC said in its judgement. The judgement is expected to smoothen the path for the sale of 13 state-run firms lined up for privatisation in this financial year.
The government hopes to raise around Rs 120 billion in 2001-02 from the sale of stakes in state-run firms spanning the telecom, aviation, petroleum and hospitality sectors. But analysts believe this year's target may also prove difficult to meet due to the global economic slowdown.
The apex court on 10 December also ruled that it is not for the courts to consider the merits of government economic policies and that the parliament was the proper forum. The SC was ruling on a petition filed by the Chattisgarh state government where Balco's smelter plant is located that challenged the decision by the government in February 2001 to sell a 51-per cent stake in the company.
The Rs 5.51-billion sale of Balco to Sterlite Industries marked the country's first major privatisation in a decade of economic reforms. "We hold that the divestment policy [regarding Balco] is not invalid," the SC said in its judgement. The judgement is expected to smoothen the path for the sale of 13 state-run firms lined up for privatisation in this financial year.
The government hopes to raise around Rs 120 billion in 2001-02 from the sale of stakes in state-run firms spanning the telecom, aviation, petroleum and hospitality sectors. But analysts believe this year's target may also prove difficult to meet due to the global economic slowdown.