Centre Invites EoIs For Strategic Divestment Of Neelachal Ispat NigamPage Visited: 8
NINL, which became India’s largest exporter of saleable pig iron since 2004-05, has been reeling under losses, compelling the government to include the public sector unit in its disinvestment plan.
January 25, 2021 / 08:46 PM IST
Initiating the process of Neelachal Ispat Nigam Ltd’s (NINL) privatisation, the government has invited expressions of interest (EoIs) for strategic disinvestment of the loss-incurring 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.
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.
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.
Four central PSUs – 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.
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 had, till December 2020, raised only Rs 11,006 crore – a fraction of the targeted amount.