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BALCO: The Disinvestment Story
Abstract
The case study looks at the issues relating to the disinvestment of Bharat Aluminum Company (BALCO) by the Government of India (GOI). It discusses the incidents, which surfaced after the GOI's decision to reduce its stake in BALCO to 49% and sell the majority holding to Sterlite Industries. In February 2001, when GOI announced the dis-investment deal of BALCO, hell broke loose. The opposition parties vehemently opposed the move and accused the government of selling BALCO for a price, which was far below its actual value. There was also stiff resistance from Government of Chhatisgarh, as well as the workers of BALCO who went on a strike opposing the deal. |
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Issuess
The case is structured to achieve the following teaching objectives:
- A general understanding of the problems associated with disinvestment.
- The political and other problems faced by the government.
- The problems faced by the private party and how to manage them.
- The ethical issues relating to sale of BALCO to a private party.
| Contents |
| Introduction |
| Balco - A Profile |
| Stage I: The Tug of War |
| Stage II: The Controversy Deepens |
| Stage III: The Debate |
| Stage IV: Post Sell Out Drama |
| All's (Not) Well that Ends Well |
Keywords
Sterlite Industries,Ajit Jogi,Fierce,Aditya Birla group,Hindalco Ltd,Corporate Restructuring,Metals & Mining,Disinvestment, Bharat Aluminum Company, BALCO, Government of India, GOI, Sterlite Industries, Government of Chhatisgarh, political squabbling