Business News Update

Cabinet clears disinvestment in Neelachal Ispat, BHEL

New Delhi, Jan 8  : The Cabinet on Wednesday approved a proposal to divest equity shares of six PSUs, including MMTC and Odisha Mining Corporation in Neelachal Ispat Ltd.

“The Cabinet has approved divestment of some shares of six companies held in Neelachal Ispat,” Information and Broadcasting Minister Prakash Javadekar told media after the Cabinet meeting here.

Cabinet has allowed Neelachal Ispat stakeholders to sell shares, he said.

The six PSUs are MMTC, National Mineral Development Corporation (NMDC), Bharat Heavy Electrical Ltd (BHEL), Odisha Mining Corporation, Odisha Investment Corporation and MECON, he said.

The minister further said MMTC will sell 49 per cent in Neelachal Ispat, while that of Odisha Mining Corporation 20 per cent, Odisha Investment Corporation 12 per cent, NMDC 10 per cent.

MMTC, a trading firm under the Union ministry of commerce and industry, is the largest stakeholder in NINL with equity of 49.9 percent.

The Odisha government via its two undertakings – Odisha Mining Corporation (OMC) and Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol), owns 26 per cent stake in NMDC Ltd, BHEL Ltd, and Mecon Ltd own minority stakes in NINL.