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Nov 28, 2012, 12.55 PM IST | Source: CNBC-TV18

FinMin expedites residual stake sale in HZL, Balco: Sources

The finance ministry is pushing for the residual stake sale in Hindustan Zinc and Balco. It wants the stake sale to happen at the earliest and in an open and transparent manner.

The finance ministry is pushing for the residual stake sale in Hindustan Zinc and Balco. It wants the stake sale to happen at the earliest and in an open and transparent manner.

In a letter to the mines ministry, the finance secretary has asked for Vedanta to be given the right to participate in the auction, reports CNBC-TV18’s Anshu Sharma

This is certainly good news for Vedanta's Anil Agarwal. The government is finally looking at expediting the process of selling its residual stake of 29.5 percent in Hindustan Zinc and 49 percent in the unlisted Bharat Aluminium Company Ltd (BALCO).

Sources indicate that the finance ministry has replied to a draft cabinet committee on economic affairs note of the mines ministry in which it has taken a clear cut stand that the stake sale must be done as soon as possible and that too in a transparent manner via an e-auction.

The finance ministry has also pointed out that Anil Agarwal’s Vedanta must have the right to bid in the auction. In recommending the course of action, the finance ministry has also pointed out that the grave fiscal situation and the recent boom in the stock markets points at a good time to look at this stake sale.

The finance ministry believes that it makes no strategic sense to hold onto the stakes, especially in Hindustan Zinc, which can garner the exchequer a significant amount of revenues.

With this push from the finance ministry, it now seems that the long-pending stake sale may take place soon after the Cabinet Committee on Economic Affairs (CCEA) takes a decision in this regard.

READ MORE ON  Balco, Hindustan Zinc, Vedanta, CCEA
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