Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Friday said there is no reason for disinvestment of Nalco, which is a profit-making Navratna Company.

"Nalco is doing well and making huge profit. There is no reason for its disinvestment," Patnaik told reporters after the Union Cabinet approved sale of minority stakes of four public sector firms, including Nalco.

Though several earlier attempts for disinvestment of Nalco have failed due to steep opposition in the state, this was for the first time that the Cabinet Committee on Economic Affairs (CCEA) allowed 12.15 percent disinvestment of Nalco.

Other CPSUs which would be disinvested are Hindustan Copper, Oil India and MMTC. While the Centre holds 87.15 percent stake in Nalco, 55,286 shareholders, including banks, financial institutions and individuals hold the rest.

With the Cabinet approving 12.15 percent of disinvestment, the Centre's stake would now come down to 75 percent in Nalco.

Nalco on September 12 had declared a total dividend of Rs 257.72 crore for 2011-12, which includes central government's share of Rs 224.60 crore.

Since inception, NALCO has paid a total of Rs 4197.02 crore as dividend of which Rs 3659.62 crore has been given to the central government, company sources said.


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