On Wednesday, the union cabinet gave 'in-principle' approval for strategic disinvestment of equity shareholding of MMTC, NMDC, MECON, BHEL and two Odisha State Government PSUs-IPICOL and OMC in Neelachal Ispat Nigam Limited (NINL) to a strategic buyer, identified through a two-stage auction procedure.
NINL is a joint venture company the four CPSEs (central public sector enterprises) and the two state PSUs (public sector undertakings) of Odisha Government are shareholders. Minerals & Metals Trading Corporation Limited (MMTC) will sell 49.78 percent stake, National Mineral Development Corporation (NMDC) 10.10 percent, MECON 0.68 percent and Bharat Heavy Electricals Ltd (BHEL) 0.68 percent.
Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) will offload 12.00 percent and Odisha Mining Corporation (OMC) will sell 20.47% stake in NINL.
"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," said the Ministry of Finance in a statement.