The Hindu Business Line : CCEA may take up Balco sell-off today

The Cabinet Committee on Economic Affairs (CCEA) is expected to take up the issue of disinvestment of residual stake in Bharat Aluminium Company Ltd (Balco) on Thursday.

The CCEA would deliberate on the future course of action that the Government should take in view of the Attorney General's (AG) opinion on selling the residual stake to the strategic partners Sterlite Industries.

"The AG had opined that the provisions of the call option that was exercised by Balco under the shareholders' agreement (SHA) and the valuation date under the SHA do not survive, being ultra vires the Companies Act," officials said.

Balco has already moved the Delhi High Court seeking arbitration. The Delhi High Court had stated earlier this month that if the two parties, i.e., the Government and Sterlite, are unable to reach a negotiated settlement by the first week of September, arbitration proceedings would begin in court.

Last week the Law Minister Mr H.R. Bhardwaj had said that arbitrators have been appointed by both sides and the issue would ultimately go for arbitration.

The Government has also not encashed the cheque given by Sterlite for buying the residual stake. The CCEA would take a call on whether to physically return the cheque or not, a formal decision on whether to go in for arbitration or not and also on the possibilities of disinvesting through the public offer route, sources said.

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