The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal to divest equity shares of six PSUs, including MMTC, NMDC, BHEL, 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.
The six PSUs are Minerals & Metals Trading Corporation Ltd (MMTC), National Mineral Development Corporation (NMDC), Bharat Heavy Electrical Ltd (BHEL), Odisha Mining Corporation, Odisha Investment Corporation and MECON.
Cabinet has allowed Neelachal Ispat stakeholders to sell shares, he said.
With this move, MMTC will now be able to sell 49% shares in Neelachal Ispat. Odisha Mining Corporation will now sell 20% and Odisha Investment Corporation and NDMC 12% and 10% respectively.
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.
(With input from agencies)