India could look at selling residual government stake in Hindustan Zinc and Balco after a Supreme Court decision, a top government official told ET.
“The residual stake sales are not off the table. The case is in SC and there was a stay order, but it has come up again now. Once it gets disposed, we will move forward in that direction,” Tuhin Kanta Pandey, secretary of department of investment and public asset management (DIPAM) said.
Sale of government stake in HZL alone can fetch it over Rs 24,000 crore, aiding the government meet the steep divestment target of Rs 2.1 lakh crore for FY21. The government owns 49% stake in BALCO and 29.54% in HZL, companies that were privatised by the Atal Bihari Vajpayee led-NDA 1 government.
In 2016, the Supreme Court put a stay order on any further sale of both companies. The government now expects decision in the matter soon.
Vedanta Group had acquired government’s 51% stake in BALCO for Rs 551.50 crore in 2000-01, and in 2002-03 it bought 26% in Hindustan Zinc Ltd for Rs 445 crore. It acquired an additional 18.92% stake in HZL, through a call option clause in its shareholder’s agreement with the government. It had also acquired an additional 20% in HZL from public.
Source: Economic Times