NEW DELHI Jan 20 India's federal government
approved on Monday a stake-sale in Hindustan Zinc Ltd,
three local television channels said citing unnamed sources.
The government holds a 29.5 percent stake in the company
that is controlled by London-listed Vedanta Resources Plc
The stake-sale is part of New Delhi's search for funds to
deliver on its pledge to narrow the fiscal deficit to 4.8
percent of gross domestic product in the fiscal year ending in
March 2014 from 4.9 percent a year earlier.
The government aims to raise around $9 billion selling
assets this fiscal year. So far, the stake-sale programme has
fetched just 3 percent of the target.
Vedanta, founded by Indian billionaire Anil Agarwal, won the
support of its shareholders in October to offer up to $3.48
billion to buy the government's minority stakes in Hindustan
Zinc and Bharat Aluminium Company.
To boost its coffers, the government will also sale a 10
percent stake in Indian Oil Corp. Additionally, it is
counting on a $2.98 billion dividend payout from state-run Coal
The fiscal gap reached nearly 94 percent of the
full-year target between April and November, casting doubts on
the government's ability to deliver on its promise.