Our Bureau

Hyderabad, Jan. 22

THE Union Government expects to get a good return on the residual stake sale in BALCO (Bharat Aluminium Company), the Finance Minister, Mr P. Chidambaram, said hereon Sunday.

The buyer, had a call option and he has exercised it, hence, there is no option but to offload the residual stake in favour.

However, we have a valuer, who is getting the valuation done for the residual stake, the Minister told reporters on the sidelines of the AICC meeting here.

Sterlite Industries had bought the majority stake in BALCO.

The Government had appointed SBI Capital Markets for getting the valuation done for the residual stake.

Economic resolutions:

Meanwhile, in the economic resolutions presented, the Cong (I) has urged the Government to put a cap against the unreasonable increase in sales tax/VAT/cess to control escalation of petroleum products.

It said the world oil prices have increased by an unprecedented three times.

This has placed a huge burden on us since we import close to 70 per cent of our crude oil requirements.

The Government had to make painful adjustments in the prices of petrol and diesel, it said.

On FDI into retail and other sectors, the resolutions said while creating a favourable climate for attracting investments through policy, the Government should take into consideration the interests of the small retailers.

The FDI norms in various sectors should also be transparent and oriented towards encouraging flows into new projects, instead of acquisitions.

(This article was published in the Business Line print edition dated January 23, 2006)
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