Oct 08, 2013 02:52 PM IST | Source: CNBC-TV18

Mines ministry moves CCEA to amend Metals Corp Act: Srcs

The mines ministry is seeking a nod from the Cabinet Committee on Economic Affairs to amend the Metals Corporation Act so that it can facilitate the 24.9 percent stake sale iin Hindustan Zinc.

The mines ministry has moved a note by the Cabinet Committee on Economic Affairs (CCEA). It has sought to amend the Metal Corporation Act to facilitate the stake sale in Hindustan Zinc, reports CNBC-TV18’s Nayantara Rai, quoting sources.

The ministry finalised a Cabinet note on October 3 where it planned to get the CCEA’s approval to amend the act.

Also read: 'Open to all means for buying residual stakes in HZL,Balco'

The note refers to law ministry’s opinions on the amendments and refers to the most recent judgement of the Attorney General GE Vahanvati dated August 15 2013, sources say. Vahanvati never categorically said that the metals act does not require amendment.

The finance ministry is very keen for the government to sell its residual 24.9 percent stake in the company to meet its divestment target. The mines ministry has promised to bring to Cabinet, the amended bill, three months after the CCEA nod.

The mines ministry also acknowledging Vahanvati’s opinion that it agrees with the finance ministry for an open market transaction for the government to sell its residual take, provided it is fair and at the market price.

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