The Hindu reported that with efforts to thrash out differences over valuation of its shares failing, Minerals and Metals Trading Corporation has informed the Ministry of Commerce that it is not willing to part with its equity in Neelachal Ispat Nigam Limited to Rashtriya Ispat Nigam Limited.

Indian steel secretary Mr DRS Chaudhary told The Hindu last week that MMTC had informed the Ministry of Commerce that it is not interested in parting with its stake in NINL.

Differences cropped up between MMTC and RINL over valuation of shares even after several rounds of talks. MMTC top brass also visited the city last year to have a dialogue with his counterpart in RINL to arrive at an understanding. RINL had pinned high hopes in acquiring stake in NINL by buying entire 49.78 per cent equity being held by MMTC in Neelachal, which has captive mines as well as 1.1 million tonne integrated steel plant at Jajpur in neighbouring Odisha state.

The acquisition would have been beneficial to both RINL and NINL as it would have given the much needed brand value to Neelachal. RINL would have got control over 110 million tonne iron reserves the NINL has at Koida.

Besides MMTC, Industrial Promotion & Investment Corporation Ltd and Orissa Mining Corporation have 26% stake in NINL.

Neelachal has debt on book amounting to INR 1,700 crore and RINL was expecting to buy MMTC equity with an investment of INR 800 crore to INR 1,000 crore.

Source - Hindu

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