Commerce Ministry seeks MMTC, SAIL opinion on NINL merger
The Commerce Ministry has initiated talks with NINL's major stakeholder MMTC and its key suitor SAIL, asking them to express their views on the proposed merger between the two public-sector steelmakers.
By PTI |
NEW DELHI: The Commerce Ministry has initiated talks with NINL's major stakeholder MMTC and its key suitor SAIL, asking them to express their views on the proposed merger between the two public-sector steelmakers.
"In a meeting held earlier this month, the top brass of the Commerce Ministry asked both MMTC and SAIL to present their views on the proposed merger," a senior government official said.
NINL is jointly promoted by MMTC and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). MMTC Limited owns the majority stake in the steel company, while the Orissa government owns 26.29 per cent through IPICOL and Orissa Mining Corporation.
The merger was stalled after the Orissa government last September conveyed its disagreement on NINL's valuation by IDBI Capital.
The Commerce Ministry officials were understood to have pointed out that valuation of the company could not be an impediment for the merger as that could be mutually agreed upon by the stakeholders and suitors.
The Steel Ministry has also sought the consent of Orissa government and MMTC on the valuation to facilitate the merger and circulated a draft note for the consideration of the Committee of Secretaries (CoS).
Meanwhile, sources said that Rashtriya Ispat Nigam Ltd is also understood to have expressed its keenness to merge NINL with itself saying the merger would create a greater synergy between the two, besides ensuring raw material security for both the state-run firms.
"In a meeting held earlier this month, the top brass of the Commerce Ministry asked both MMTC and SAIL to present their views on the proposed merger," a senior government official said.
NINL is jointly promoted by MMTC and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). MMTC Limited owns the majority stake in the steel company, while the Orissa government owns 26.29 per cent through IPICOL and Orissa Mining Corporation.
The merger was stalled after the Orissa government last September conveyed its disagreement on NINL's valuation by IDBI Capital.
The Commerce Ministry officials were understood to have pointed out that valuation of the company could not be an impediment for the merger as that could be mutually agreed upon by the stakeholders and suitors.
The Steel Ministry has also sought the consent of Orissa government and MMTC on the valuation to facilitate the merger and circulated a draft note for the consideration of the Committee of Secretaries (CoS).
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Meanwhile, sources said that Rashtriya Ispat Nigam Ltd is also understood to have expressed its keenness to merge NINL with itself saying the merger would create a greater synergy between the two, besides ensuring raw material security for both the state-run firms.
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