BALCO's stake sale has been cleared of legal issues

Bharat Aluminium Company's (BALCO's) stake sale has also been cleared of legal issues, say sources. Similarly, Hindustan Zinc climbed around 12 percent to Rs 117.40 on news that legal hurdles surrounding divestment in the firm had have been cleared, according to CNBC-TV18 sources.

Majority stakes in both these companies were sold to Vedanta group during 2001-2003 and now the government has a residual stake of 29.5 percent stake in Hindustan Zinc and 49 percent stake in Bharat Aluminium Company (BALCO).

The Law Ministry had been asked to provide its opinion as there were complex issues in selling remaining stakes in both the firms .

Meanwhile, the government has budgeted Rs 14,000 crore from residual stake sale in companies like Hind Zinc. However, the government had to wait as the mines ministry has decided to revisit every document related to HZL divestment.

The long pending stake sale of government share in Hindustan Zinc (HZL) got delayed further as the mines ministries legal advisor has suggested the ministry to revisit all divestment related issues of HZL.

This included verifying and rechecking documents relating to cases relating to the company writ petition filed by Prashant Bhushan in the Supreme Court, law ministries advises, all Cabinet proposals and decisions taken so far for the divestment of HZL.

Law ministry, in its opinion, had stated that since HZL was made a PSU under Metal Corporation Act which was passed by the Parliament divestment related matter will have to be approved via amendment to the said Act.