New Delhi: The government has said that the disinvestment of Neelanchal Ispat Nigam Ltd (NINL) has moved to the concluding stage after the receipt of financial bids. The news was shared by Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Thursday on Twitter: "Financial bids received for strategic disinvestment of Neelachal Ispat Nigam Limited. Process now moves to concluding stage." The DIPAM Secretary, however, did not divulge the number of bids received for the PSU.
Three steel majors — ArcelorMittal, world's largest steel company, Sajjan Jindal-led JSW Steel and Hyderabad-based Megha Engineering and Infrastructure Ltd (MEIL) — are believed to be in the race to purchase the government's stake in NINL. The plants of Tata Steel and JSW are nearby Neelachal Ispat Nigam Ltd. SBI Capital Markets Ltd is the transaction adviser appointed by the Department of Investment and Public Asset Management (DIPAM) for NINL disinvestment process.
Earlier on March 29 this year, the DIPAM Secretary had said that the disinvestment of NINL had moved to the second stage on schedule as multiple Expressions of Interest (EoIs) had been received. The Cabinet Committee on Economic Affairs (CCEA) had given its in-principle approval for the strategic disinvestment of NINL in 2020.
NINL is a 1.1 MTPA integrated steel plant located in Kalinganagar Industrial Complex in Duburi, Odisha. It has captive iron ore mines in Sundergarh and Keonjhar districts. The steel PSU has a complex shareholding with MMTC holding 49.78 percent, NMDC 10.10 percent, MECON 0.68 percent, BHEL 0.68 percent, IPICOL 12.00 percent and the Orissa Mining Company Ltd 20.47 percent.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)