The Cabinet Committee on Economic Affairs on January 8, 2020 gave ‘in principle’ approval for strategic 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 Ltd. (BHEL) (0.68%)
- Industrial Promotion and Investment Corporation of Odisha Ltd.(IPICOL) (12.00%)
- Odisha Mining Corporation (OMC) (20.47%) in Neelachal Ispat Nigam Limited (NINL).
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.
Significance
- 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.