Hindustan Zinc: Cabinet okays 29.5% sale in Hind Zinc, may get Rs 38,000 crore | India Business News

NEW DELHI: In a recent push to disinvestment, the Union Cupboard on Wednesday authorised the sale of the federal government’s residual stake of 29.5% in Hindustan Zinc (HZL) which can assist elevate much-needed revenues of practically Rs 38,000 crore. The transfer got here whilst prime officers prompt that the Centre will push for the privatisation of two state-run lenders.
The Cupboard Committee on Financial Affairs (CCEA) authorised the sale, which can be via the provide on the market route and will likely be managed by the division of funding and public asset administration (Dipam).
HZL is now a subsidiary of Anil Agarwal’s Vedanta Ltd, which owns 64.9% within the firm. In 2002, the then Atal Behari Vajpayee-led NDA authorities bought 26% of its stake in HZL to Sterlite Alternatives and Ventures (SOVL) for Rs 445 crore.
Sterlite had then acquired one other 20% from the open market, elevating its stake to 46%. In 2003, Sterlite purchased one other 18.9% stake in HZL to emerge as the bulk shareholder.

The Centre had determined in 2012 to divest its residual 29.5% stake in HZL however it obtained slowed down with delays. In February this 12 months, the Supreme Court docket had allowed the residual stake sale after the Centre accused the CBI of presenting essentially fallacious info concerning HZL’s disinvestment in the course of the Vajpayee authorities’s tenure and had mentioned that the investigative company had misled the apex court docket to direct registration of a recent FIR for probe into alleged irregularities.
The newest choice to maneuver forward with the stake sale can even assist the federal government inch nearer to the disinvestment goal for the present fiscal 12 months set at Rs 65,000 crore. A number of excessive profile gross sales such because the privatisation of BPCL has been placed on the back-burner for now on account of lack of curiosity.