Can't commit specific timeline on HZL stake sale: Mines Min
Earlier this month, the Ministry had send a draft Cabinet Note to other government departments.
October 24, 2013 / 09:07 IST
The Mines Ministry today refused to give any timeline on selling the remaining government stake in Hindustan Zinc (HZL), saying it is yet to get feedback from other ministries, including Ministry of Finance, on the draft cabinet note floated on the proposed stake sale.
Earlier this month, the Ministry had send a draft Cabinet Note to other government departments. In its Note, the Ministry had argued that Parliament approval is required in selling remaining stake of government in Hindustan Zinc as it was incorporated after the erstwhile.Also Read: Vedanta hopeful of govt taking Rs 21,600 cr divestment baitMetal Corporation of India Ltd was nationalised through the Metal Corporation (Nationalisation and Miscellaneous Provisions) Act, 1976. "We can not commit a specific date, the consultative process needs to be completed... We had given a timeline (to all ministries while floating the Cabinet Note) but we have not received everybody's comments."We are sending them the reminders to submit their views. We will go to Cabinet for a final decision only after we receive their comments," Joint Secretary in the Mines Ministry Durga Shanker Mishra told reporters here.In the draft Cabinet Note, the Mines Ministry has cited a Supreme Court order of 2003, which had stayed disinvestment of HPCL and BPCL, saying that they were formed through a statute and required Parliament approval and same is applicable on Hindustan Zinc also.It has also proposed to bring a Bill to amend the Act within 3 months after the Cabinet approval on the proposal to offload remaining stake in Hindustan Zinc. It will submit a final note for Cabinet's consideration after taking comments from the other concerned ministries, Mishra said.Currently, the government holds 29.5 per cent stake in Hindustan Zinc and 49 per cent stake in Bharat Aluminium Company (Balco). The two erstwhile PSUs were sold to Vedanta group during 2001-2003.The Finance Ministry had earlier said that it is aiming to raise about Rs 15,000 crore this fiscal by selling residual government stakes in some companies, including Hindustan Zinc and Balco. The targeted money is part of government's plans of raising Rs 55,000 crore this fiscal through disinvesting shares in PSUs. When asked about selling remaining government stake in Balco, Mishra said that the stake sale and valuation of the aluminium maker will be decided by the DisinvestmentDepartment as it does not have same legal issues as with the Hindustan Zinc."We have written to Disinvestment Department on Balco's stake sale. It does not have the same legal issue, which is there in Hindustan Zinc. Our ministry has sent the proposal to them. Rest is to be decided by Disinvestment department. As of now, there is no feedback (from their side)," he said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
