Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

India has invited expression of interest (EOI) for strategic disinvestment of Neelachal Ispat Nigam Limited (NINL), as per the media reported.


NINL is a joint venture of MMTC, NMDC, BHEL, MECON – owned by the central government — and two public sector units of Odisha, namely OMC and IPICOL.


The Cabinet Committee on Economic Affairs on January 8, 2020 had given in-principle approval for strategic disinvestment of equity shareholding of MMTC (49.78pc), NMDC (10.10pc), MECON (0.68pc), BHEL (0.68pc), IPICOL (12pc) and OMC (20.47pc) in NINL to a buyer, identified through a two-stage auction procedure of the integrated steel plant.


NINL has been facing liquidity crunch and has been shut since March 2020. The money payable by the successful bidder would go on “a priority basis” towards settlement of labour dues, operational creditors, commercial lender debt, promoter debt and purchase of 93.71pc of shareholding of NINL as per a predetermined waterfall mechanism. 


The divestment receipts would go to state-owned companies, and not to the government. Interested bidders can submit their expression of interest by March 29, 2021.


Leave a Reply

Your email address will not be published.