BALCO stake sale: Govt to maximise gains

BALCO stake sale: Govt to maximise gains

Press Trust India

13th March 2006

The government has said it will sell its remaining stake in Bharat Aluminium Company (BALCO) at a price higher than fair value and unit sale price to maximize the returns.

"The action of valuation of shares has been initiated in accordance with the provisions of shareholders agreement and prescribed procedures. The shares are to be sold at a price which is higher than fair value and unit sale price," said Minister for Mines T Subbarami Reddy.

He said that SBI Capital Markets was appointed as independent valuer on December 26 2005 to determine the fair value of 49 per cent stake. The valuation report was submitted on January 23.

Reddy said the last dividend cheque it received from BALCO was for 2003-04 of Rs 5.4 crore while the turnover and gross profit of the company had been increasing consistently since its privatisation.

Mining lease

In a reply to another question, he said that the Government got three proposals from Indian subsidiaries of foreign companies for mining leases.

Transworld Garnet India Pvt Ltd, Indian subsidiary of Canadian company, has made two proposals for mining Garnet in Andhra Pradesh.

Geo Mysore Services, promoted by an Australian company, has also submitted a proposal for mining gold, copper, lead, zinc, silver and all other associated minerals in Andhra Pradesh. (PTI)