Posts
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-inr-small.gif)
New Delhi/ Mumbai: The law ministry has set the stage for allowing Anil Agarwal's Sterlite Industries and the Tatas to buy the remaining government stake in companies such as Balco, Hindustan Zinc and VSNL, which were disinvested during the NDA regime.
A top government source said law minister Kapil Sibal has given a green signal for allowing call and put options for these stake sales, a move which is pushed by the finance ministry, like talks for settlement with Vodafone over a Rs 11,000 crore tax dispute. "These are provisions that are there in every investment-friendly country. That's how we can again build a positive investment
climate in India," the source said, while pointing to the move on PSU stake sale.
In 2001, the government had sold a 51% stake in Balco to Sterlite Industries, leaving it with 49% holding. It holds a tad less than 30% in Hindustan Zinc, while Sterlite has close to 65% stake. In case of VSNL, however, the Tatas may not be interested given that the government holds a golden share that gives it power to veto any decision. Sibal and finance minister P Chidambaram had met over the weekend, although it could not be confirmed if both the issues had been discussed by the two lawyer-turned-politicians. In the past, Chidambaram had recused himself from issues related to Agarwal's companies as he was associated with them before his reentry into the Union cabinet.
A top government source said law minister Kapil Sibal has given a green signal for allowing call and put options for these stake sales, a move which is pushed by the finance ministry, like talks for settlement with Vodafone over a Rs 11,000 crore tax dispute. "These are provisions that are there in every investment-friendly country. That's how we can again build a positive investment
climate in India," the source said, while pointing to the move on PSU stake sale.
In 2001, the government had sold a 51% stake in Balco to Sterlite Industries, leaving it with 49% holding. It holds a tad less than 30% in Hindustan Zinc, while Sterlite has close to 65% stake. In case of VSNL, however, the Tatas may not be interested given that the government holds a golden share that gives it power to veto any decision. Sibal and finance minister P Chidambaram had met over the weekend, although it could not be confirmed if both the issues had been discussed by the two lawyer-turned-politicians. In the past, Chidambaram had recused himself from issues related to Agarwal's companies as he was associated with them before his reentry into the Union cabinet.
0 comments:
Post a Comment