Business Line, citing a Steel Ministry report, has reported that the divestment of MSTC’s 100% subsidiary Ferro Scrap Nigam Ltd has entered the second phase with the share purchase agreement under preparation, and due diligence by short-listed bidders being carried out. Business Line reports said “Inspection of Bhilai and Rourkela is done, while for Durgapur, Burnpur and Bokaro, physical visits are being carried out. The buyers are bent on physical inspection and are not agreeable to drone or virtual inspection. However, the transaction advisor could not arrange site visits for shortlisted bidders due to law and order issues by trade unions.”The Cabinet Committee on Economic Affairs had accorded its in-principle approval to disinvest entire equity shareholding held through MSTC in FSNL, through strategic disinvestment and transfer of management control in 2016. DIPAM issued expression of interest and preliminary information memorandum in April 2022 and received multiple EOIs in June 2022. The winning bidder will have to undertake obligations such as employee protection, business continuity, asset stripping, and lock-in of the shares, which would be specified at the RFP stage. The eligibility criterion for bidders included a mandatory net worth of at least INR 150 crore and a positive profit after tax in at least two of the immediately preceding five financial years.Incorporated in 1979, FSNL is a specialized service provider, engaged in recovery, processing and handling of scrap and slag. Presently, it is rendering services to the integrated steel plants including SAIL’s Bhilai Steel Plant, Rourkela Steel Plant, Bokaro Steel Plant, Durgapur Steel Plant, ISP Burnpur, VISP Bhadravati and Salem Steel Plant, RINL Visakhapatnam, NINL Duburi, BHEL Haridwar and Air India Mumbai. FSNL has a total strength of 826 employees. According to FSNL’s 2021-22 annual report, FSNL’s dispatch stood at 3.654 million tonnes of scrap, while slag haulage was at 10.713 million tonne tonnes. Its earnings stood at INR 415 crore; with profit-after-tax being INR 40 crore.