Disinvestment of BALCO
Lok Sabha
The Government of India on March 2, 2001, disinvested 51% of its share holdings in Bharat Aluminium Company Limited (BALCO) to the Strategic Partner (SP), namely, M/s Sterlite Industries (India) Limited (SIIL). A Shareholders’ Agreement (SHA) and a Share Purchase Agreement (SPA) were also signed between the Government of India and the SP. Modalities of disinvestments and acquisition of remaining 49% shares held presently by the Government of India are provided in the SPA and the SHA.
As per the provisions of the SHA, SIIL had sent a Call Notice to acquire the remaining shares of BALCO. After the Call Notice was received, Ministry of Mines, in consultation with Department of Disinvestment and as per the recommendations of the Core group of Secretaries on Disinvestment (CGD) started the process of valuation of remaining 49% shares as per the provisions of SHA.
The Attorney General of India has opined that the provisions of Call Option and the valuation date under the SHA do not survive, being ultravires the Companies Act. No decision has been taken by the Government in this regard.
This information was given by the Minister of State for Mines, Dr. T. subbarami Reddy in a written reply in the Lok Sabha today.
DS/AS/220806-PQ4-Disinvestment-BALCO
(Release ID :20076)