Govt engaging with Vedanta to facilitate its residual stake sale in BALCO

The government plans to sell part of its 49 per cent stake in Bharat Aluminum Company Limited (BALCO), which is known to have asked its main promoter Vedanta, to recover an ongoing arbitration case.

Sources familiar with the development said the Ministry of Mines has asked the Department of Investment and Public Asset Management (DIPAM) to engage with Vedanta to withdraw the arbitration case, as the government plans to take the initial public offering (IPO) route. to sell part of its 49 percent stake in BALCO.

The Ministry of Mines is the 49 percent shareholder in BALCO and sources have informed that DIPAM has held preliminary discussions with Vedanta to withdraw the arbitration case, which will pave the way for the company to be listed on the stock exchange.

In 2009, BALCO filed an arbitration case against the government over a dispute over the valuation of the remaining stake.

The sources added that it is up to DIPAM to decide how much of the government’s 49 percent stake can be sold.

It may be a residual part or a large part of it as well, one source told IANS.

Although preliminary discussions have taken place between DIPAM and Vedanta about withdrawing the arbitration case, sources said that detailed discussions are likely to take place asking the promoter to withdraw the case, if the sale of the remaining stake to the government is to go ahead.

In 2001, the government divested 51 per cent stake in BALCO to Sterlite Industries Limited, a subsidiary of Vedanta Limited.

BALCO’s main operations are located in the town of Korba in Chhattisgarh, while its mines supplying high quality bauxite are located in Kawardha and Mainbat in the same state.

– Jans

Answer / United Kingdom /

(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)

First published: 04 Jun 2023 | 7:58 PM ist