NMDC informs Steel Ministry about disinvestment rumours

NMDC has informed the steel ministry about the confusion being created that the state-owned miner is being disinvested, a government official said.

Some people for their vested interests are spreading rumours on social media and among the general public that NMDC is being disinvested, which has created an atmosphere of confusion, its Chairman N Brijendra Kumar said last Friday.

He also clarified that NMDC itself is just a stakeholder in Neelachal Ispat Nigam Ltd (NINL)

Last week, the government gave in-principle approval for the strategic sale of NINL by allowing PSU shareholders to sell their stake in the steel company.

NMDC has apprised the steel ministry that confusion is being created and rumours are being spread over the issue, the official said, while assuring action against those who are misleading the public.

"Still confusion is being created by some ppl regarding disinvestment in #NINL, a joint venture company of central and state PSUs in the State of Odhisha. The present decision is not for the disinvestment of @nmdclimited. I repeat No Disinvestment of #NMDC by the present decision," Kumar said in a tweet.

He also said people must read the government's decision with regard to NINL and understand that the decision is not related to the divestment of NMDC.

Neelachal Ispat Nigam Ltd (NINL) is a joint venture company, in which four central PSUs -- MMTC, National Mineral Development Corporation (NMDC), Bharat Heavy Electricals Ltd (BHEL) and MECON -- and two Odisha government companies, IPICOL and Odisha Mining Corporation (OMC), are shareholders.

MMTC holds 49.78 per cent share in NINL, followed by OMC (20.47 per cent), IPICOL (12 per cent), NMDC (10.10 per cent). MECON and BHEL hold 0.68 per cent stake each in the company.

The strategic buyer for NINL will be identified through a two-stage auction procedure, an official statement had said.