Blink News Network
New Delhi, Jan 8: The Narendra Modi government at the Centre Wednesday approved the in principle disinvestment of equity shareholding of six Public Sector Units (PSUs) into the Odisha-based Neelachal Ispat Nigam Limited (NINL), a joint venture of two Odisha government PSUs and others.
Neelachal Ispat Nigam Limited (NINL), a company promoted by MMTC Ltd, Industrial Promotion and Investment Corporation of Orissa limited (IPICOL) and other government agencies and has set up an 1.1 million ton Integrated Iron and steel plant at Kalinganagar, Duburi in the Jajpur district of Odisha as per the statement of the NINL on their official website.
Union Petroleum and Natural Gas Minister Dharmendra Pradhan and other Union ministers announced the decision of the Union Cabinet of Economic Affairs in the national capital. According to the Union government, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has given ‘in principle’ approval for strategic disinvestment of equity shareholding of six public firms.
The list of companies which will see the disinvestment in equity shareholding with included-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%).
The list also included two Odisha 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.
The Union government said that the 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 government claims this disinvestment is likely to unlock resources for development. In a media statement the Union Cabinet said, “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 also added, “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.”