CCEA clears divestment in NINL

Under the decision, Central undertakings Minerals and 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%), will divest their equity in Neelachal Ispat Nigam Limited (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 2 State PSUs of Odisha Government, namely IPICOL and OMC are shareholders.

The decision comes on a day Left parties and central trade unions organised a day long all-India strike against the economic policies of the Centre including disinvestment in public sector companies.

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, an official release said on the Cabinet decision.

Briefing the media, Information and Broadcasting Minister Prakash Javadekar said the decision is pro-labour and would create more employment. 51 per cent of ownership will continue with the government, he said.

Out of the shares held in NINL, MMTC proposes to shed 10 per cent, Odisha Investment Corporation 12 per cent, Odisha Mining Corporation 20 per cent and MECON and BHEL will shed 0.68 per cent each.

Steel Minister Dharmendra Pradhan said the capacity of one million tonnes in NINL could be augmented to 10 million tonnes in times to come.