Cabinet approves strategic disinvestment in NINL

New Delhi: The Union Cabinet on Wednesday approved in-principle strategic disinvestment of equity shareholding in Neelachal Ispat Nigam Ltd (NINL).

Minerals and Metals Trading Corporation Ltd (MMTC), National Mineral Development Corp (NMDC), MECON and Bharat Heavy Electricals Ltd (BHEL) and Odisha government hold stakes in NINL.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given ‘in principle’ approval for strategic disinvestment of equity shareholding of MMTC (49.78%), NMDC (10.10%), MECON (0.68%) and BHEL (0.68%) and two Odisha Government PSUs namely; Industrial Promotion and Investment Corporation of Odisha Ltd.(IPICOL) (12.00%) and Odisha Mining Corporation (OMC) (20.47%) in Neelachal Ispat Nigam Limited (NINL) to a strategic buyer, identified through a two-stage auction procedure.

MMTC, a trading firm under the Union ministry of commerce and industry, is the largest stakeholder in NINL with equity of 49.9 percent. NMDC Ltd, BHEL Ltd, and Mecon Ltd own minority stakes in NINL.