The Union Cabinet Wednesday approved the divestment of 29.5 per cent of the Centre's residual stake in Hindustan Zinc, India's integrated mining and resources producer of zinc, lead, silver and cadmium.
Official sources attending the Cabinet meeting said the proposal got an in-principle approval. The Centre expects to garner over Rs 38,000 crore through the divestment.
The share sale comes close on the heels of the life insurance behemoth LIC's public offer which raised over Rs 20,500 crore this month.
The Centre has set the disinvestment target at Rs 65,000 crore for the current fiscal year ending March 2023. It has garnered over Rs 23,500 crore through LIC and ONGC stake sales. The disinvestment is likely to be completed in the first half of the current fiscal if market conditions are good, said a source.
The Hindustan Zinc divestment proposal was cleared by the Supreme Court in November 2022.
Hindustan Zinc is a subsidiary of Vedanta Limited, which holds a nearly 65% stake in the HZL. It is the world's second-largest zinc producer.
The centre has so far garnered Rs 23,575 crore through the divestment proceeds after selling its stake in LIC and Oil and Natural Gas Corporation (ONGC).