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SAIL -Neelachal Ispat Nigam merger proposal gets revoked: Report

23 Jul 2012 Evaluate

After being in discussion mode past seven years, the proposal of SAIL -Neelachal Ispat Nigam (NINL) merger has been called off by the Commerce Ministry, which is unwilling to part ways with the country’s largest producer and exporter of pig iron, as mentioned in some media report.

State run MMTC, which falls under the administrative control of the Commerce Ministry, is the principal promoter of Neelachal Ispat Nigam (NINL), which runs a 1.1 million tonnes per annum steel plant in Odisha.

Earlier, it was reported that Cabinet Committee on Economic Affairs has approved the disinvestment of 10.82% stake in Steel Authority of India (SAIL) from Government of India’s shareholding. The share sale process, proposed to be conducted through auction route or offer for sale, is expected to fetch over Rs 4,000 crore to the government. Further, post this disinvestment Government of India’s shareholding in the company would come down to 75%. At present, Govt. holds 85.82% stake in the company.

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