Govt begins process for privatisation of Ferro Scrap Nigam Ltd (FSNL)

• DIPAM has floated an RfP for engaging asset valuers for privatisation of FSNL
• Bids are to be submitted by December 6

New Delhi: The Centre has begun the process for the privatisation of Ferro Scrap Nigam Ltd (FSNL) as it has floated a request for proposals (RfP) for engaging asset valuers for the process. In a notification released in this regard, the Department of Investment and Public Asset Management (DIPAM) said, "The Government of lndia has in-principle, decided to disinvest 100 percent equity in Ferro Scrap Nigam Limited (FSNL) – a 100 percent subsidiary of MSTC Ltd through Strategic Sale along with transfer of management control."

FSNL privatisation: DIPAM seeks asset valuers

"The Department of lnvestment & Public Asset Management (DIPAM), on behalf of Government of lndia (Gol), requires the services of a reputed Asset Valuer Entity – registered with lnsolvency & Bankruptcy Board of lndia (lBBl) to carry out the company's assets valuation to act as Asset Valuer and assist the Government in the process of Strategic Disinvestment of Ferro Scrap Nigam Limited (FSNL), a 100 percent subsidiary of MSTC Ltd. under administrative control of Ministry of Steel, till the completion of initiated transaction unless called off by the Government," the RfP said. Bids are to be submitted by December 6.

FSNL

Ferro Scrap Nigam Limited (FSNL) is a Miniratna-II IMS Certified Central Public Sector Enterprise incorporated on March 28, 1979 and having its registered office at Bhillai, Chhattisgarh. It is a wholly owned subsidiary of MSTC Ltd under the administrative control of Ministry of Steel (Government of lndia). 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 government is looking to raise Rs 1.75 lakh crore through disinvestment/privatisation of PSUs in FY22. A number of PSUs, like Bharat Petroleum Corporation Ltd (BPCL), BEML, Pawan Hans, Shipping Corporation of India (SCI), are slated for disinvestment. The Centre has just concluded the privatisation of national carrier Air India. 

(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.)