Balco stake sale: Min to approach CCEA

The mines ministry would soon approach the Union Cabinet to seek its opinion on a directive of the Delhi high court for settling the sale of residual equity in the erstwhile Balco to Sterlite Industries Limited within four weeks.

Acting on a petition filed by Sterlite, which acquired 51 per cent stake in the company in 2001, Justice H R Malhotra had asked the Centre to negotiate with Sterlite on its claim for the balance 49 per cent share with the Government.

"The issue of selling the residual 49 per cent stake in Balco is pending before the Cabinet Committee on Economic Affairs and it would have to take a decision on it. We would approach the CCEA soon in this connection," a top mines ministry official told PTI.

Sterlite filed the petition following government's refusal to accept the company's cheque of Rs 1,098 crore (Rs 10.98 billion) in lieu of residual stake.

However, the government has expressed its willingness to negotiate on the issue with the aluminum major.

Appearing on behalf of the government, Additional Solicitor General Gopal Subrasmanian submitted the Centre was ready to 'negotiate, conciliate and mediate as per the agreement' on the issue and a the government has conveyed its willingness in a letter on August 2.

Senior Advocate and former Additional Solicitor General Mukul Rohatgi, appearing for Sterlite said the company wanted to 'purchase the share at the price fixed under the contract.'

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