The Indian government will commence the process for the strategic sale of a stake in state-run steel producer Neelachal Ispat Nigam Limited (NINL) from September 22, government officials said on Friday, September 18.
The officials said that the Department of Investment and Public Asset Management (DIPAM) would commence “road shows” to attract private investors for the sale of an equity stake from September 22. The sale of the equity stake will be through the auction process.
While the focus initially will be to find private investors among domestic and foreign steel companies, if case such investors are unwilling the government is also open to merging the Odisha-based steel producer with another government steel company like Steel Authority of India Limited (SAIL) or Rashtriya Ispat Nigam Limited (RINL), the officials said.
NINL operates a 1.1 million mt steel mill at Kalinganagar, Odisha. The total equity of the company is held by several government-owned companies including trading firm MMTC Limited (49.78 percent), iron ore miner NMDC Limited (10.10 percent), steel consultancy firm Mecon (0.68 percent), and subsidiaries of the Odisha government (32.47 percent).