The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi has given 'in principle' approval for strategic disinvestment of Neelachal Ispat Nigam Limited (NINL).
Disinvestment would be made to a strategic buyer, identified through a two-stage auction procedure.
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%) will be taken up.
Similarly disinvestment of equity of the 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%) is also approved.
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 programs 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.
NINL is running a Steel Complex in Kalinga Nagar in Jajpur is facing rough weather with little liquidity to run the plant on which over 10,000 people are dependent on this plant.