Moving ahead with the residual stake sale in Hindustan Zinc Ltd (HZL) and Bharat Aluminium Company (Balco), an inter-ministerial panel has begun the process of valuation of the two companies so as to complete the deals by the end of March.
"We are in the process of valuing the two companies. The IMG discussed the issuance of Request For Proposals (RFP) for valuation of HZL and Balco," a senior Finance Ministry official said.
The government holds a 49 per cent stake in Balco and 29.5 per cent in HZL.
"We are working very hard to make it happen by March," Disinvestment Secretary Ravi Mathur told reporters here.
The government had budgeted to collect Rs 14,000 crore through residual stake sales in private companies this fiscal year (FY14).
Last month, the Cabinet had cleared the stake sale in HZL through auction route while a decision on Balco is yet to be taken.
During 2001-03, the government had sold majority stakes in the two erstwhile PSUs to the Vedanta group.
At present, London-listed Vedanta holds a 64.92 per cent stake in HZL and owns 51 per cent in Balco.
In January 2012, Vedanta had proposed to acquire government's remaining stake in the two erstwhile PSUs for about Rs 17,275 crore.
Last October, shareholders gave their nod to raise offers for acquiring the remaining government holding in HZL and Balco by up to 43 per cent or Rs 24,663 crore.
After shareholders' approval, Vedanta Board is now empowered to make an offer of up to Rs 21,636.56 crore for the remaining government stake in HZL. For Balco, the offer can be up to Rs 3,026.14 crore.
Earlier this week, Vedanta chairman Anil Agarwal met Economic Affairs Secretary Arvind Mayaram and discussed the stake sale in two companies.
Mr Agarwal later told reporters that he would bid for the companies if the price offered is lucrative.
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