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Steel Executives Federation of India Requests PM to Merge NINL with SAIL

Steel News - Published on Fri, 16 Aug 2019

Image Source: Indian Express
Express News Service reported that Steel Executives Federation of India has written to the Prime Minister, seeking immediate merger of the loss-making Neelachal Ispat Nigam Ltd with the bigger state-run steel maker Steel Authority of India Ltd. Mr Bimal Kumar Bisi, general secretary SEFI, said “The proposed merger would be a hassle free process since it involves transfer of shares by Metals and Minerals Trading Corporation of India and other public sector undertakings to SAIL.”

State-run trading company MMTC, which falls under the administrative control of the commerce ministry, is the principal promoter of NINL but has decided to quit NINL. Besides, the two others key promoters Odisha Mining Corporation and Industrial Promotion and Investment Corporation of Odisha Ltd, which own 26 per cent stake are also no longer keen to retain their stakes. Central public sector enterprises like NMDC, BHEL Ltd and Mecon are among other minor equity participants in NINL.

SAIL had tried to take over NINL several times in 2007, 2010, and 2014 but it could not materialize as the Ministry of Commerce and Industry was not willing to give away India’s largest pig iron producer, according to sources.

Neelachal Ispat Nigam Ltd is a 1.1 million tonnes operating plant with all auxiliary units and undisputed land of over 2,500 acres, which is sufficient for expansion upto 5 million tonne. It has captive mine of 874.29 hectares, 110 million tonne of estimated reserve, with an average iron content of 65%

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Posted By : Ratan Singh on Fri, 16 Aug 2019
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