- After the receipt of EoIs, the government will now allow potential bidders to undertake due diligence
- The government had earlier sought legal and transaction advisers for FSNL disinvestment in 2020 but the process was stalled due to the COVID-19 pandemic
New Delhi: The government on Monday said it has received multiple preliminary bids for the strategic disinvestment of FSNL (Ferro Scrap Nigam Ltd). “Multiple Expressions of interest (EOIs) received for Strategic Disinvestment of Ferro Scrap Nigam Ltd (FSNL)- a wholly owned subsidiary of MSTC Ltd,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted on Monday.
FSNL disinvestment: Due diligence to begin now
After the receipt of EoIs, the government will now allow potential bidders to undertake due diligence. Thereafter, financial bids would be invited for the strategic disinvestment of FSNL. The DIPAM had invited bids for the strategic sale of FSNL in March this year. The last date for putting in bids was May 5 which was later extended to June 17.
FSNL is a Miniratna-II IMS Certified Central Public Sector Enterprise incorporated on March 28, 1979. It has its registered office at Bhillai, Chhattisgarh. It is a wholly-owned subsidiary of MSTC Ltd under the administrative control of the Ministry of Steel (Government of India). FSNL has eight steel plants in the country. The government had earlier sought legal and transaction advisers for the privatisation of FSNL in 2020. However, because of the second wave of COVID-19, the process was stalled.
The PSU is a pioneer in metal scrap recovery and slag handling in India. The government has budgeted to collect Rs 65,000 crore through PSU disinvestments in 2022-23. So far, it has mopped up Rs 24,544 crore through minority stake sale and share buy-back.
(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.)