The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given in-principle approval for strategic disinvestment of equity shareholding in Neelachal Ispat Nigam.
The Cabinet has given nod for disinvestment of Minerals & Metals Trading Corporation (MMTC) (49.78 percent), National Mineral Development Corporation (NMDC) (10.10 percent), MECON (0.68 percent) and Bharat Heavy Electricals (BHEL) (0.68 percent) and two Odisha State Government PSUs namely Industrial Promotion and Investment Corporation of Odisha (IPICOL) (12 percent) and Odisha Mining Corporation (OMC) (20.47 percent) in Neelachal Ispat Nigam (NINL) to a strategic buyer, identified through a two-stage auction procedure.
NINL is a joint venture company, in which four CPSEs namely MMTC, NMDC, BHEL and MECON and two state PSUs of Odisha government, namely IPICOL and OMC are shareholders.
The proposed strategic disinvestment of NINL will unlock resources to be used to finance the social sector/developmental programmes of the government benefiting the public.
It is also expected that the strategic buyer may bring in new management/technology/investment for growth of the company and may use innovative methods for development of the business operations of the company, which can create more employment opportunities.