The Indian government has tweaked the bidding rules for the privatization of state-run steel mill Neelachal Ispat Nigam Limited (NINL), a government official said on Thursday, March 18.
The official said that, under the new rules announced by the government, any sole investor can include a partner or partners and form a consortium after successfully bidding to secure a majority equity stake in NINL. Similarly any consortium of investors can include new partners in the consortium after successfully bidding for the steel company, the official said.
A successful sole bidder or a consortium of bidders will need to inform the transaction advisor seeking approval for addition of another partner within 60 days of its bid being declared successful in securing a majority stake in NINL, while the Department of Investment and Public Asset Management (DIPAM), has announced the changes in the bidding rules, the official added.
The government of India has already issued notices seeking bids for 93.7 percent of equity currently held by various government-owned entities and the privatization of the 1.1 million mt per year pig iron and billet producing steel mill located in the eastern Indian state of Odisha.