Government in no hurry to sell stake in Hindustan Zinc

NEW DELHI: The government is in no hurry to sell its remaining stake in the Vedanta Resources-controlled Hindustan Zinc ( HZL) due to volatile stock market conditions.

Besides, it has been waiting to get more legal clarity on the issue, which is subjudice.

Sources said the government had decided not to go ahead with the stake sale as current market conditions are volatile, hindering efforts to realise the real value of its stake.

When asked about the sale, Mines Secretary Balvinder Kumar told PTI: "The stake sale was approved long back in 2014, but we did not go ahead with this as we wanted more legal clarity on it." policyIn 2002-03, the government sold 64.92 per cent stake in HZL to NRI billionaire Anil Agarwal-led Vednata Resources, while it has retained 29.54 per cent stake.

Earlier in the day, the Supreme Court restrained the government from going ahead with any further disinvestment of its stake in HZL.

The apex court also questioned the government for selling of 29 per cent of valuable shares in the company which deals with the strategic minerals.

It relates to a petition filed by National Confederation of Officers Associations of Central Public Sector Undertakings opposing the disinvestment, saying the decision is "irrational, illogical, illegal, unreasonable, mala fide and arbitrary".

In 2012, Vedanta had offered about $2.57 billion to buy the government's residual stakes in HZL.

The London Stock Exchange-listed metal and mining conglomerate also holds 51 per cent stake in Balco, which too has been in the stake sale pipeline for quite sometime.