The Indian government has overruled a proposal from Ministry of Steel for merger of Ferro Scrap Nigam Limited (FSNL) with state-run Steel Authority of India Limited (SAIL) and has instead approved outright sale of FSNL, a government official said on Tuesday, October 29.
The Indian government stated that SAIL itself was going through stress from domestic steel industry recession and merger of an ailing FSNL would only increase financial burden on the latter.
An outright sale of FSNL would fetch the government good value of the shares currently held by the government in FSNL, the official added.
Currently, FSNL operated at all steel mills under SAIL, for extraction of metal slag and processing and sale of scrap generated at these steel mills.