Hindustan Zinc Ltd.

The government may not complete the sale of residual stake in Hindustan Zinc (HZL) and Bharat Aluminium (Balco) this fiscal year, according to finance ministry. Earlier, the government had proposed to sell its entire 29.5% stake in HZL and 49% holding in Balco via open auction, which together were expected to fetch the exchequer about Rs 20,000 crore.

The deferral of the stake sale in these companies has pushed up the disinvestment target for the next fiscal to Rs 51,925 crore, which includes Rs 36,925 crore from regular asset sales and Rs 15,000 crore from residual stake sales.

The economic affairs secretary Arvind Mayaram, stated that the decision to divest stake in two companies has been held as the process requires time and may not be completed before March 31.

The government now expects to raise around 19,027 crore from asset sale which includes Rs 3,000 crore from the disposal of its Axis Bank holding. The government has so far managed to raise around Rs 3,500 crore from divestment proceeds.