Economic Times reported that the proposal to merge SAIL and Neelachal Ispat Nigam has been scrapped as the commerce ministry is not willing to give away the country's largest pig iron producer.

Representatives of NINL, Steel Authority of India and their respective ministries were present in a meeting convened by the Disinvestment Department.

A source in the steel ministry said that "The merger between SAIL and NINL is not going to happen. In a recent meeting with the Department of Disinvestment, the Commerce Ministry has conveyed its message that it does not want to part with NINL.”

The source added that "Following their communication, the matter has been put to rest and the steel ministry has also decided not to pursue the matter from here on.”

Talks on SAIL NINL merger had been going on for over seven years now. A Committee of Secretaries had given the go ahead to the proposal in July 2005.

State run trading company MMTC, which falls under the administrative control of the commerce ministry, is the principal promoter of Neelachal Ispat Nigam. NINL is country's largest pig iron producer and runs a 1.1 million tonnes per annum steel plant in Odisha. Industrial Promotion and Investment Corporation of Odisha has also stake in NINL.

Source - Economic Times

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