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Union Cabinet Approves Disinvestment In Neelachal Ispat

Bhubaneswar/New Delhi: The Cabinet on Wednesday approved a proposal to divest equity shares of six PSUs, including MMTC and Odisha Mining Corporation in Neelachal Ispat Nigam Limited (NINL).

“The Cabinet has approved divestment of some shares of six companies held in Neelachal Ispat,” Information and Broadcasting Minister Prakash Javadekar said adding that the Cabinet has allowed Neelachal Ispat stakeholders to sell shares.

The six PSUs are MMTC, National Mineral Development Corporation (NMDC), Bharat Heavy Electrical Ltd (BHEL), Odisha Mining Corporation, Odisha Investment Corporation and MECON, he said.

MMTC, the largest stakeholder in NINL with equity of 49.9 percent, will sell 49 per cent in Neelachal Ispat, while that of Odisha Mining Corporation 20 per cent, Odisha Investment Corporation 12 per cent, NMDC 10 per cent, said Javadekar.

The Odisha government via its two undertakings – Odisha Mining Corporation (OMC) and Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol), owns 26 per cent stake in NMDC Ltd, BHEL Ltd, and Mecon Ltd own minority stakes in NINL.

Meanwhile, Odisha BJP vice president, Samir Mohanty termed the disinvestment of Neelachal Ispat historical and said that the move will boost production capacity and the State’s revenue generation

(With IANS Inputs)

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