India's federal government has opposed Hindustan Zinc's proposed $2.98 billion (Rs 24,649 crore) acquisition of zinc assets from Vedanta Ltd, a letter from the government to the company showed on Monday.
Directors nominated by the government at Hindustan Zinc had dissented to the proposed deal announced on January 19, the letter showed.
The government holds a near 30 per cent stake in Hindustan Zinc, while Vedanta is the company's largest shareholder.
According to the letter, the government reiterated dissent to the "related party transaction". "We would urge the company to explore other cashless methods of acquisition of these assets."
The government will oppose any further resolutions on the deal and explore all legal avenues available to it, it added.
Hindustan Zinc and Vedanta did not immediately respond to Reuters requests for comment.
(Published 20 February 2023, 05:23 IST)
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