Cabinet approves strategic disinvestment in MMTC, NMDC, BHEL and others

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave in-principle approval for strategic disinvestment in Minerals & Metals Trading Corporation Ltd (MMTC), National Mineral Development Corporation (NMDC), Bharat Heavy Electricals Ltd (BHEL), Metallurgical and Engineering Consultants (MECON) and two Odisha state government public sector undertakings.

The government will offload 49.78 per cent equity shareholding in MMTC, 10.1 per cent in NMDC besides 0.68 per cent in MECON and BHEL each to a strategic buyer after a two-stage auction procedure.

Besides, it will sell 12 per cent stake in Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) and 20.47 per cent in Odisha Mining Corporation (OMC) in Neelachal Ispat Nigam Limited (NINL).NINL is a joint venture company in which four central public sector enterprises -- MMTC, NMDC, BHEL and MECON -- besides two state PSUs of the Odisha state government -- 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," according to an official statement.

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