Union Cabinet approves disinvestment of loss making NINL

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NewDelhi : The union cabinet on Wednesday approved strategic disinvestment of loss making Neelachal Ispat Nigam Limited (NINL) to a strategic buyer which will be identified through a two-stage auction procedure.  

NINL a joint venture between Odisha government and MMTC, a PSU under the ministry of Commerce and Industry is undergoing a financial crisis for the last several years. The company, which requires immediate Rs.300 Crore funding for running its operation, has already shut down several units at its Jajpur plant in Odisha.

“The Cabinet Committee on Economic Affairs chaired by the Prime Minister  Narendra Modi on Wednesday accorded ‘in principle’ approval for strategic disinvestment of equity shareholding of Minerals & Metals Trading Corporation Limited (MMTC) (49.78%), National Mineral Development Corporation (NMDC) (10.10%), MECON (0.68%) and Bharat Heavy Electricals Ltd. (BHEL) (0.68%) and two Odisha State Government PSUs namely; Industrial Promotion and Investment Corporation of Odisha Ltd.(IPICOL) (12.00%) and Odisha Mining Corporation (OMC) (20.47%) in Neelachal Ispat Nigam Limited (NINL) to a strategic buyer, identified through a two-stage auction procedure” said a government release.

NINL is a Joint Venture company, in which four CPSEs namely MMTC, NMDC, BHEL and MECON and 2 State PSUs of Odisha Government, namely IPICOL and OMC are shareholders.

“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. It is also expected that the successful strategic buyer may bring in new management/technology/investment for the growth of the company and may use innovative methods for the development of the business operations of the company, which may generate more employment opportunities” it added.

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