Government approves privatisation of Neelachal Ispat Nigam Limited
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.
- 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.
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