Multiple Firms Show Interest in NINL Privatisation
The central government has received multiple Expressions of Interest (EoI) from various firms for the privatisation of the Neelachal Ispat Nigam Ltd (NINL).
Sharing the news on Twitter, the secretary for the Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey said that the transaction for NINL has moved to the second stage as per schedule. “Multiple expressions of interest received for privatisation of Neelachal Ispat Nigam Ltd (NINL). The transaction moves ahead to the second stage, on schedule”, read the tweet.
Presently, the Neelachal Ispat Nigam Ltd is a joint venture between MMTC, NMDC, BHEL, MECON, and two Odisha state government-owned undertakings namely – OMC and IPICOL. Back in January 2020, the Union Cabinet had approved the equity division among the stakeholders with MMTC having 49.78 percent, NMDC with 10.10 percent, MECON and BHEL with 0.68 percent. As for the state-owned companies, IPICOL has a 12 percent stake and OMC has 20.47 percent under its control.
Notably, the company has set up a 1.1-million-ton integrated iron and steel plant at Kalinganagar, Duburi in Jajpur district. NINL runs its captive power plant to suffice the internal power requirement and air separation unit required for the production of oxygen, nitrogen, and argon. Along with these, the company also has its own captive iron ore mines which are currently under development.
This would be another step towards the government’s plan of privatisation, which comes amidst disinvestment plans initiated for several PSUs. While presenting the Union Budget for FY22, Finance Minister Nirmala Sitharaman had mentioned that the previously announced disinvestment processes shall be completed in the next financial year.