Multinational mining giant Vedanta’s shares on Tuesday were on the up despite news of the government opposing the company’s plan to offload its zinc assets.

What Happened? The government opposed Hindustan Zinc Ltd's (HZL) $2.98 billion (₹24,664.21 crore) acquisition of assets from Vedanta’s operations in Africa on Wednesday which cast a dent to Vedanta’s plans to trim its net debt which stands at $7.7 billion (₹63,730 crore).

The central government, which holds a 29.54% stake in Hindustan Zinc has asked the firm to explore other cashless methods for acquisition, even with Vedanta being a majority shareholder with 64.92% equity share of the integrated producer of zinc, lead and silver.

The reason behind the government opposing the deal is said to be a complete wipeout of cash on HZL’s books, should the sale materialise.

Read Next: Why Adani Group’s Ambuja Cements, ACC Are Shooting Higher Today

The government’s opposition to the deal also arrives a week after Vedanta Resources — the company’s flagship entity said it had slashed net debt by $2 billion (₹16,554.6 crore) in the last 11 months with more cuts in the pipeline.

The conglomerate has been actively trying to reduce its net debt after its financial health was questioned by recent S&P Global Ratings.

S&P Global had said Vedanta Resources' ability to meet its financial obligations beyond September would depend on a planned $2 billion (₹16,554.6 crore) fundraising as well as the proposed sale of THL Zinc Ltd, a Vedanta Ltd unit that holds zinc assets in Africa.

Price Action: Vedanta shares were trading 0.61% higher at ₹312.55 on Tuesday, shortly after markets opened.

Read Next: Macfos IPO: How To Check Allotment, Listing Date And Grey Market Premium