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The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the government's 29.5% stake sale in Hindustan Zinc Ltd (HZL), as the Centre looks to accelerate its disinvestment drive, as some key privatisation proposals have hit hurdles.

The sale of the entire 29.5% stake in HZL could fetch around 38,000 crore to the exchequer, according to a PTI report.

The development would give a push to the government's disinvestment drive in the current financial year. The Centre has budgeted 65,000 crore from PSU disinvestment and strategic sale.

The sale of 29.5% stake representing over 124.96 crore shares would fetch around 38,000 crore to the exchequer at current market prices.

Shares of HZL closed at 305.05, up 3.14% on the BSE. During the day, the scrip touched a high of 317.30 a share.

Hindustan Zinc was a government-owned company till 2002. In April 2002, the government offloaded a 26% stake in HZL to Sterlite Opportunities and Ventures Ltd (SOVL) for 445 crore— thereby giving Vedanta group management control in HZL.

Vedanta group later bought 20% from the market and another 18.92% from the government in November 2003, raising its ownership in Hindustan Zinc to 64.92 per cent.

Vedanta, led by mining magnate Anil Agarwal, recently said the company can buy just 5 per cent additional stake in the HZL considering the price of the shares on offer.

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