New Delhi: The Union Cabinet on Wednesday approved the sale of government's entire stake in Hindustan Zinc Limited. PTI reported. The government holds 29.5 per cent stake in Hindustan Zinc while Vedanta Ltd, the parent firm, holds 64.92 per cent stake. The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi. PM Modi held the meeting hours after returning from the two-day Quad leaders' Summit in Japan. 


Following the Cabinet decision, shares of Hindustan Zinc surged seven per cent on Wednesday. As of Wednesday, the stake is valued at Rs 39,385.66 crore, reports said.


In November 2021, the Supreme Court had allowed the government to divest its the remaining shareholding of 29.5 percent in Hindustan Zinc. 


Hindustan Zinc is one of the largest integrated producers of zinc and lead in India. The government had offloaded 26 per cent stake in the firm in 2002, which was bought by Vedanta Group.


Earlier in the day, the Centre issued a notification capping sugar exports at 10 million tonnes in the current marketing year ending September to maintain domestic availability and price stability. This comes two weeks after the Centre banned wheat exports as an intense heatwave hit output and domestic prices hit a record high. 


In the last Cabinet meeting on May 18, the Cabinet approved the amendments to the National Policy on Biofuels-2018. The new amendments will allow more feed stocks for production of biofuels, and advance the ethanol blending target of 20 per cent blending of ethanol in petrol to ESY 2025-26 from 2030. They will also promote the production of biofuels in the country by units located in Special Economic Zones and Export Oriented Units.