India: Govt Announces Merger of 3 Major Steel Companies

Announcing the biggest merger of the Indian steel sector, the Central Government has initiated phase wise merger of three big steel-makers of India. In the first phase, Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Ltd, (also known as Vizag Steel) will be merged together. Subsequently, the newly formed company will be merged with New Delhi based Indian state-owned steel-making company Steel Authority of India Limited (SAIL).

This is being considered as one of the biggest merger ever witnessed by the Indian steel sector. Media reports are also suggesting that the government has started talks with all the parties for this merger. Central government-owned MMTC (Metals and Minerals Trading Corporation of India) Limited holds around 49.78% shares in NINL. While the share of the other different government companies is about 34.93 %. Remaining share which is around 15.29% is being held by Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL). Some media reports are pointing out that at present, the central government is in talks with the Odisha government regarding selling their stake. However, the Odisha government is not yet ready to sell its stake.

As per reports, Department of Investment and Public Asset Management (DIPAM) is working hard to successfully carry out this merger and it’s also in talks with Odisha government, RINL and SAIL. The government wants to complete the merger of NINL and RINL in this financial year. After this merger, SAIL will emerge as the largest player in the steel sector.