PTI reported that Vedanta may not revise its INR 17,000 crore offer to buy the government's stake in Hindustan Zinc and Bharat Aluminium Company adding that the valuation was concluded as per the agreement signed at the time of acquiring majority stakes in the two firms.

Mr Agarwal chairman of Vedanta said that "It is not the question of more or less the government has asked us to give a proposal and on the basis of agreement, we have given the proposal in the interest of the industry. We believe that this is a fair proposal."

He said that "It's not a question of to consider or reconsider. It’s laid down and whatever value comes should be fine. I am really looking forward to the government to take a decision. It’s very important to send the right signal to the market and the world."

Mr Agarwal said that "The government is definitely going slow and we will request the government to take a very active part. If they want to remain as a partner, that is fine with us. If they want to disinvest we are ready to pay whatever is the right amount as per the agreement.”

In 2001, the NDA government sold 51% in BALCO to Vedanta's subsidiary Sterlite Industries for INR 551 crore through the disinvestment process. Hindustan Zinc was divested in 2003 to Sterlite for INR 750 crore. Currently, the government holds 49% in Balco and 29.54% in Hindustan Zinc.

In January, Sterlite had offered a little over INR 17,000 crore to buy out the residual stakes of the government. The offer was made following a government communique to the mining firm seeking its response on the matter. However, a committee of secretaries examining the stake sale in the two firms did not find the Sterlite offer attractive in its last meeting. It referred the matter to the empowered group of ministers for a final decision. The EGoM is yet to meet on the issue.

Source - Press Trust of India

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