Cabinet okays disinvestment of equity shareholding in Odisha’s NINL

New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here today gave ‘in principle’ approval for strategic disinvestment of equity shareholding in Odisha’s Neelachal Ispat Nigam Limited (NINL).

As per official sources, the cabinet approved disinvestment of equity shareholding of Minerals & Metals Trading Corporation Limited (MMTC) (49.78%), National Mineral Development Corporation (NMDC) (10.10%), MECON (0.68%) and Bharat Heavy Electricals Limited (BHEL) (0.68%) and two Odisha State Government PSUs namely Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) (12.00%) and Odisha Mining Corporation (OMC) (20.47%) in NINL to a strategic buyer, identified through a two-stage auction procedure.

NINL is a Joint Venture company, in which four CPSEs namely MMTC, NMDC, BHEL and MECON and 2 State PSUs of Odisha Government, namely IPICOL and OMC are shareholders.

The proposed strategic disinvestment of NINL would unlock resources to be used to finance the social sector/developmental programmes of the Government benefiting the public. It is also expected that the successful strategic buyer may bring in new management/technology/investment for the growth of the company and may use innovative methods for the development of the business operations of the company, which may generate more employment opportunities, sources added.