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The government has not received any new offer from Vedanta Resources for acquiring its remaining stakes in Hindustan Zinc Ltd (HZL) and Balco, a senior official said today.
"There is no such intimation. They (Vedanta) have not approached us yet with any such offer. We have read it only in the newspapers that their (Vedanta) shareholders are meeting in London on revising the offers," said the official in the Mines Ministry, while requesting not to be named.
Last week, Vedanta Chairman Anil Agarwal had said the government is "unnecessarily spending so much time" on taking a final call on selling its remaining stake in HZL and needs to take a decision at the earliest.
"The government wants to disinvest. (They) can offload in the market, can give it to us but they have to take a view. (It) is unnecessarily spending so much of time (on taking a final decision)," he had said.
Vedanta has convened shareholders' meeting on Wednesday, seeking their nod for empowering its Board to raise the offers up to Rs 24,663 crore. In January 2012, the mining major had offered Rs 17,275 crore to buy the residual government stakes in the two erstwhile PSUs.
Subject to shareholders approval on Wednesday, Vedanta Board will be empowered to offer up to Rs 21,637 crore (USD 3.482 billion) for acquiring government's remaining 29.5% stake in Hindustan Zinc.
For Bharat Aluminium Company (Balco), Vedanta Board can offer up to Rs 3,026 crore for acquiring its remaining 49% stake from the government, subject to shareholders' nod. Taken together, it becomes Rs 24,663 crore and is 43% more than Vedanta's January 2012 offer.
If Vedanta makes the offers at that level (Rs 24,663 crore), it would be a bonanza for the government as the offers would amount to meeting nearly 45% of the Rs 55,000 crore disinvestment target of the current fiscal.
So far, the government has not taken final decision on selling stakes in the two erstwhile PSUs and the consultation process between various government departments is still on. The Mines Ministry has not yet received feedback of several ministries on the draft Cabinet Note it had circulated earlier this month on selling the remaining stake in Hindustan Zinc.
The ministry has said that Parliament's approval is required in selling remaining stake of government in Hindustan Zinc as it was incorporated through a statute. It has cited a Supreme Court order of 2003, which had stayed disinvestment of HPCL and BPCL in the absence of a similar approval from the Parliament.
The government holds 29.5% stake in Hindustan Zinc Ltd (HZL) and 49% stake in Balco. Majority stake in the two erstwhile PSUs was sold to Vedanta group during 2001-2003.
