Hindustan Zinc-Balco stake sale on Disinvestment dept's agenda

Dept also to identify sick PSUs for possible disinvestment

Government's residual stake sale in HZL-Balco and issues concerning loss-making PSUs figured in the presentation by the Department of Disinvestment to new Finance Minister Arun Jaitley.

"We will go ahead with appointing valuers for HZL-BALCO stake sale. Cannot give a time-frame for stake sale," Department of Disinvestment (DoD) Secretary Ravi Mathur told reporters here.

He further said the DoD is in the process of identifying sick PSUs for a possible disinvestment.

The interim Budget had made provisions of Rs 1,500 crore for revival of loss-making PSUs.

Sick PSUs include HMT Ltd, HMT Chinar Watches Ltd, Bihar Drugs & Organic Chemicals Ltd, Nagaland Pulp & Paper Co.

"We are yet to start the process of identifying the loss making PSUs. We have to start the process," Mathur said.

"We apprised him (the Finance Minister) of the current policy. He wanted to understand how the last minority stake sales went through," he added.

As per the interim Budget, the disinvestment proceeds have been pegged at Rs 36,925 crore and another Rs 15,000 crore from stake sale in HZL-BALCO.

The government holds 49% stake in Balco and 29.5% in Hindustan Zinc Ltd (HZL).

During 2001-03, the government had sold majority stake in the two erstwhile PSUs to Vedanta group.

At present, London-listed Vedanta holds 64.92% stake in HZL and 51% in Bharat Aluminium Company (Balco).

In January, 2012, Vedanta had proposed acquisition of government's remaining stake in the two erstwhile PSUs for about Rs 17,275 crore.

In October, 2012, shareholders gave their nod to raise offers for acquiring the remaining government stake in HZL and Balco by up to 43% or Rs 24,663 crore.

The government had initially planned to sell the residual stake in these two companies last fiscal. However, in interim Budget it postponed the stake sale to the current fiscal.