Disinvestment of steel to takeoff for Shipping Corporation, NMDC post elections
The mode of privatization efforts is targeted for a broader strategy to increase efficiency and attract private investment in key sectors of the economy.
The disinvestment process for the state-run Shipping Corporation of India (SCI) and NMDC Steel is all set for strong momentum following the general elections in early June. The government is focused on finalizing the board composition of Shipping Corporation of India Land and Assets Ltd (SCILAL), a new entity formed to segregate SCI’s non-core real estate assets in compliance with listing requirements.
Upon listing SCILAL, the Centre may invite financial bids for its entire 63.75 percent stake in SCI, while retaining ownership of SCILAL. This move will effectively privatize SCI’s core assets, leaving its non-core real estate assets under government control.
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Read Also : THDCIL Women Team Brings Gold and Silver MedalsEarlier, the Maharashtra government waived stamp duty for SCILAL’s demerger to ease the listing procedures. The government expects to aggressively shot the privatisation of SCI and NMDC Steel after the elections, banking on heightened investor interest.
The listing of SCILAL is set to establish a reserve price for SCI, with the government's stake valued at approximately Rs 7,800 crore based on current stock prices.
On a similar pattern the selloff of NMDC Steel’s 50.79 per cent stake will also commence post-election. This follows the operationalization of its steel plant in Nagarnar last year. The government's strategy focuses on divesting NMDC Steel's steel-making operations while retaining the mining division under NMDC.
Read Also : NTPC Talcher Kaniha Concludes 19th Rural Sports Meet (Athletics)The mode of privatization efforts is targeted for a broader strategy to increase efficiency and attract private investment in key sectors of the economy.
The government's move to finalize the board composition of SCILAL and the upcoming selloff of significant stakes in SCI and NMDC Steel signal a robust approach towards disinvestment, aiming to streamline operations and maximize returns from these state-run enterprises.
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