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The government plans to exit Bharat Aluminium Company (Balco) if Sterlite industries, the majority stake holder in the company decides to pick up its 49% in the company by exercising a call option. " Government is likely to egress Balco completely in the current fiscal,"said sources in the department of disinvestment in the ministry of finance.As per the shareholders agreement Sterlite Industries can exercise the call option to pick up the remaining 49% government stake before March07.The government has appointed SBI caps to evaluate its 49% stake in Balco.In order to kick-start the National Investment Fund(NIF),the government is looking at the divestment of Balco. "The government is keen to get the funds flowing,so that the corpus in the NIF can start fetching returns soon," said officals .The government is in the process of finalising the fund managers for NIF.The 8% Maruti sell-off will also be completed this fiscal.The left parties are unlikely to oppose the decision since it is a part of the shareholders agreement that was drafted when Balco was first divested in 2001.The strategic sale of 51% stake was sold to Sterlite Industries,in 01 fetching Rs 551.5 crore. |
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| Posted : 12/14/2005 |
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