Initiating the process of Neelachal Ispat Nigam Ltd's (NINL) privatisation, the government has invited expressions of interest (EoIs) for strategic disinvestment of the public sector unit.
The Department of Investment and Public Asset Management (DIPAM)- nodal body in-charge of inviting bidders, issued a global invitation for EoIs on January 25.
As per the invite issued, the government aims to disinvest 100 percent shareholding of the six state-run stakeholders of NINL.
Four central PSUs - Metals and Minerals Trading Corporation (MMTC), National Mineral Development Corporation (NMDC), Bharat Heavy Electricals Ltd (BHEL) and MECON - and two Odisha government companies IPICOL and Odisha Mining Corporation (OMC) are shareholders in NINL.
MMTC is the leading stakeholder with a total of 49.78 percent shares in the company, followed by NMDC (10.10 percent), OMC (20.47 percent), IPICOL (12.00 percent), MECON (0.68 per cent) and BHEL (0.68 per cent).
"The proposed strategic disinvestment of NINL would unlock resources to be used to finance the social sector/developmental programmes of the government benefiting the public," the statement added.
NINL, which became India’s largest exporter of saleable pig iron since 2004-05, has been reeling under losses which compelled the government to include the state-run firm in its disinvestment plan.
Also read: No going back on privatisation of BPCL, Air India.
The Odisha-based NINL had set up 1.1 million tonne integrated iron and steel plant at Kalinganagar, Duburi, in the state's Jajpur district.
The central government, over the past six years, has laid down disinvestment as one of the key capital-raising policy in successive budgets. However, it has faced challenges in privatising some of the state-run units including Air India.
The divestment target for FY21 was Rs 2.1 lakh crore
. The government has netted Rs 17,957 crore so far.