Millennium Post

Divestment target in mind, Govt to sell residual HZL stake via auction

The government has decided to sell its remaining stake in Hindustan Zinc through auction route as it strives to meet the disinvestment target, and a formal proposal to the Cabinet in this regard will be sent soon, official sources said.

The sources further said that selling remaining 29.5 per cent residual stake in Hindustan Zinc, which is now controlled by Anil Agarwal's Vedanta Resources, is expected to fetch about Rs 15,000-20,000 crore.

In this year's Budget, government had set a target of raising about Rs 55,000 crore from disinvestment. Of this, Rs 40,000 crore was estimated to come through part-sale of stake in public sector firms and Rs 15,000 crore from selling residual stakes that government holds in some firms, including Hindustan Zinc and Balco. So far, the government has managed to mop up only about Rs 2,800 crore through disinvestment of PSU shares, including the just concluded follow-on public offer of Power Grid Corporation.

‘There was a broad consensus with the Finance Ministry's views on HZL stake sale issue in the last week's meeting chaired by the Prime Minister that stake sale in Hindustan Zinc should happen through the auction route. A formal Cabinet note on the matter will be circulated soon,’ a source said.

Earlier, the Finance Ministry had opined that Hindustan Zinc is no more a public sector company and selling shares through auction route does not require Parliament nod, while responding to the draft Cabinet note of Mines Ministry.
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