CCEA approves sale of government’s residual stake in Hindustan Zinc

The Cabinet Committee on Economic Affairs (CCEA) on Monday approved the sale of the government's residual stake in Hindustan Zinc, a company now owned by Vedanta group company Sterlite Industries.

The government currently owns a 29.54-per cent stake in Hindustan Zinc and the sale will not require any legislative changes, CCEA said in a release.

An empowered group of ministers (EGoM) will take a call on the modalities and the timing of the share sale.

The sale is likely to be done through the open auction method, under which anyone can bid for the shares and the highest bidder will get the shares.

Based on the current market price, the government expects to mop up Rs16,500 crore from sale of the 29.54 per cent stake.

The CCEA is also expected to consider the sale of government's remaining stake in Balco, after the law ministry has given a favourable opinion on the sale.

Meanwhile, the CCEA is understood to have rejected the mines ministry's proposal to amend the Metal Corporation (Nationalisation and Miscellaneous Provision) Act, 1976 before divesting the shares. According to the ministry, the attorney-general did not say that further divestment could be carried out without amending the Act.

Shares of Hindustan Zinc gained around 2.5 per cent on Tuesday following reports that the government had approved sale of stake in Hindustan Zinc Ltd.