Government approves privatisation of Neelachal Ispat Nigam Limited

Tags: Economics/Business

The Alternative Mechanism on strategic disinvestment has approved the bid of Tata Steel long products Limited for 93.71% of shares of Neelachal Ispat Nigam  Limited at an enterprise value of Rs. 12,100 crore.

• The Neelachal Ispat Nigam Limited is a joint venture of 4 Central Public Sector Enterprises (CPSE)s, namely Metal and  Mineral Trading Corporation (MMTC), National Mineral Development Corporation (NMDC), Bharat Heavy Electrical Limited (BHEL), MECON and 2 Odisha Govt. Public Sector Undertakings , namely  Odisha Mining Corporation(OMC) and Industrial Promotion & Investment Corporation of Odisha (IPICOL). 
• Neelachal Ispat  Nigam Limited  has an integrated steel plant with a capacity of 1.1 million tonnes at Kalinganagar, Odisha.
• This is the first instance of privatization of a public sector steel manufacturing enterprise in India.

Alternative Mechanism 

•  It was set up by the Central government to fast track strategic disinvestment in public sector enterprises .
• The Alternative Mechanism has the power to decide the timing, price and number of shares of the public sector enterprises  to be sold and privatised.  
• The Alternative Mechanism consists of the Union Finance Minister,Union Minister of Roads and Highways  , and the concerned Ministers.