Mauritian firm Twinstar Holdings' plan to increase stake in Sterlite Industries does not violate the shareholder agreement it signed with the government for the divestment of Balco, the Rajya Sabha was informed on Thursday.
"The proposal of Twinstar Holdings Ltd, Mauritius, to enhance its shareholding in Sterlite Industries India Ltd does not attract the provisions of the shareholder agreement since Balco will continue to be controlled and managed by the strategic partner, Sterlite Industries," Minister of State for Communications and IT Su Thirunavukkarsar said in a written reply.
The government has divested 51 per cent of its stake in Balco through strategic sale in favour of Sterlite and as per the shareholder agreement Sterlite is barred from transferring these shares for three years from the date of divestment.
In reply to another question, he said Rajasthan Drugs and Pharmaceutical Ltd, a subsidiary of IDPL, has been referred for divestment by the administrative ministry, while the cases of Hindustan Salts and Sambhar Salts have been referred to the administrative ministry to resolve some pending issues prior to their divestment.
He said the government has decided to give financial assistance to FACT for implementing a voluntary retirement scheme in the company.
Thirunavukkarsar admitted it would be difficult to realise the Rs 13,200 crore (Rs 132 billion) divestment target due to serious constraints arising as a fallout of the Supreme Court's judgement on Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd sell-off.