Strategic disinvestment transaction was implemented through two stage open, competitive bidding process supported by a multi-layered consultative decision-making mechanism
The Alternative Mechanism, empowered by the Cabinet Committee on Economic Affairs, comprising Nitin Gadkari, Union Minister for Road Transport and Highways, Nirmala Sitharaman, Union Cabinet Minister for Finance and H. D. Kumaraswamy, Union Minister of Steel, have approved the highest bid amounting to Rs. 320 crore (Three hundred and twenty crores only) of M/s. Konoike Transport Co. Ltd. for sale of 100% equity shareholding of MSTC Ltd in Ferro Scrap Nigam Limited (FSNL) along with transfer of management control.
FSNL is a 100% subsidiary of MSTC Ltd. under Ministry of Steel (MoS) was incorporated on 28.03.1979 to provide steel mill services. FSNL specialises in the recovery and processing of scrap from slag and refuge generated during iron and steel making across different steel plants.
CCEA had granted ‘in-principle’ approval in October, 2016 for strategic disinvestment of entire equity shareholding of MSTC Ltd. in Ferro Scrap Nigam Ltd. (FSNL) to a strategic buyer to be identified through two-stage auction process.
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