The government is looking to fast track its disinvestment programme, which aims at raising about Rs 40,000 crore in the current fiscal. Disinvestment Secretary Ravi Mathur has convened a meeting tomorrow to discuss sale of government’s residual stake in Balco, sources said.
Officials from the Corporate Affairs Ministry, the Mines Ministry and the Department of Economic Affairs, among others, are expected to attend the meeting. The government aims to collect Rs 14,000 crore by selling its residual stakes in private companies. The government holds 49 per cent stake in Balco and has 29.5 per cent shareholding in Hindustan Zinc Ltd (HZL).
Last month, the Cabinet had cleared the stake sale in HZL through auction route while a decision on Balco is yet to be taken. During 2001-03 period, the government had sold majority stakes in the two erstwhile PSUs to the Vedanta group.
At present, London-listed Vedanta holds 64.92 per cent stake in HZL and 51 per cent stake in BharatAluminium Company (Balco). In January 2012, Vedanta had proposed to acquire the government’s remaining stake in the two erstwhile PSUs for about Rs 17,275 crore.
Last October, the shareholders gave its nod to raise offers for acquiring the remaining government stake in HZL and Balco by up to 43 per cent or up to Rs 24,663 crore. After shareholders approval, Vedanta Board is now empowered to make an offer of up to Rs 21,636.56 crore for the remaining government stake in HZL. For Balco, the offer can be up to Rs 3,026.14 crore.