Cabinet approves strategic disinvestment of equity shareholding of MMTC, NMDC, BHEL and others in Neelachal Ispat

New Delhi [India], Jan 8 (ANI): The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave in-principle approval for strategic disinvestment of equity shareholding of MMTC, NMDC, MECON and BHEL and two Odisha State Government PSUs in the Neelachal Ispat Nigam Limited (NINL) to a strategic buyer.

The government will offload 49.78 per cent equity shareholding of MMTC, 10.1 per cent of NMDC, 0.68 per cent of MECON and BHEL each and two Odisha government PSUs -- Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) (12 per cent) and Odisha Mining Corporation (OMC) (20.47 per cent) in NINL to a strategic buyer, who will be identified through a two-stage auction procedure.

NINL is a joint venture company in which four CPSEs - MMTC, NMDC, BHEL and MECON and IPICOL and OMC are shareholders.

"The proposed strategic disinvestment of NINL will unlock resources to be used to finance the social sector and developmental programmes of the government benefiting the public," an official statement said.

"It is also expected that the successful strategic buyer may bring in new management and technology and investment for the growth of the company and may use innovative methods for the development of business operations which may generate more employment opportunities," said the statement further. (ANI)