The Cabinet Committee on Economic Affairs (CCEA) has approved the sale of the Government’s residual stake in Hindustan Zinc, a company now owned by Vedanta group’s Sterlite.
The stake sale will be done without any legislative changes.
An Empowered Group of Ministers (EGoM) will take a call on the modalities and the timing of the share sale.
The sale is likely to be done through the open auction method. In other words, anyone can bid for the shares and the highest bidder(s) will get the shares.
The Government currently owns 29.54 per cent stake in Hindustan Zinc. Based on the current market price, the Government expects to mop up Rs 16,500 crore.
Following the decision on Hindustan Zinc, the CCEA is now expected to consider selling the Government’s remaining stake in Balco, as the Law Ministry has given a favourable opinion on the same.
The CCEA is understood to have rejected the Mining Ministry’s proposal to amend the Metal Corporation (Nationalisation and Miscellaneous Provision) Act, 1976 before divesting the shares. According to the Ministry, the Attorney-General did not say that further divestment could be carried out without amending the Act.
shishir.s@thehindu.co.in