New Delhi: Government is believed to have decided to put on hold privatisation of aluminium firm NALCO in view of opposition from both within the Centre and Orissa leadership, besides its employees.

The decision to go slow on disinvestment in NALCO is believed to have been taken at the informal meeting Prime Minister Atal Behari Vajpayee held with senior Cabinet colleagues to break the disinvestment stalemate following the controversy over sale of equity in oil public sector undertakings (PSUs).

While the meeting decided on strategic sale in Hindustan Petroleum Corporation Ltd (HPCL) and public offering of shares in Bharat Petroleum Corporation Ltd (BPCL), disinvestment in NALCO was put on hold "for the time being", government sources said.

The decision was taken owing to a number of factors including the opposition by Union Coal and Mines Minister Uma Bharti and the Orissa government, led by Biju Janata Dal (BJD), an ally of the ruling National Democratic Alliance (NDA) at the Centre.

PTI