Mines Ministry to go by CCEA advice on HZL, Balco stake sale

New Delhi: The Mines Ministry today said it will go by the advice of Cabinet Committee on Economic Affairs (CCEA) on selling residual stakes in Hindustan Zinc and Balco to Sterlite Industries.

Mines Secretary Viswapati Trivedi, talking to reporters here, however, added that his Ministry was yet to receive any fresh proposal from the metal major in recent times.

"I have no clue what they (Sterlite) have decided and why they have decided. We have not heard anything formally from them. We have to consult CCEA on how to proceed in this matter," he said on the sidelines of an event organised by Central Geological Programming Board.

Billionaire Anil Agarwal-led Vedanta Group, the holding firm of Sterlite Industries, holds 51 per cent stake in Balco and 64.9 per cent stake in Hindustan Zinc Ltd (HZL). The remaining stakes in these two firms are with the government.

Vedanta has called shareholders meeting on August 28 in London, alongside its annual general meeting, to seek nod for the sweetening its offers in the two firms to Rs 21,635 crore, up to 25 per cent more than the previous offer of January.

When asked whether the deals are likely to sail through within the current fiscal, Trivedi refused to hazard a guess.

"Whether it's done in this financial year or not, we will have to see. CCEA can take it up anytime. It depends upon the availability of the members," he said.

If the deal with Vedanta goes through, this alone could meet over 72 per cent of the government's disinvestment target of Rs 30,000 crore for the current fiscal.

To a query on the proposed disinvestment of government's stake in Nalco and Hindustan Zinc, Trivedi said, "Department of Disinvestment is considering them on fast-track basis."