SEFI Seeks Merger of Loss-Making Firm with State-Run Steelmaker

SEATTLE (Scrap Monster): The Steel Executives Federation of India (SEFI) sought immediate merger of loss-making Neelachal Ispat Nigam Ltd. (NINL) with the state-owned steel making company Steel Authority of India Ltd. (SAIL).

According to Bimal Kumar Bisi, General Secretary, SEFI, Metals and Minerals Trading Corporation of India (MMTC)- the principal promoter has already decided to quit NINL. The other two key promoters- Odisha Mining Corporation and Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) too have announced their unwillingness to retain their stakes. The proposed merger will only need transfer of shares by MMTC and other PSUs to SAIL, he noted.

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It must be noted that SAIL’s attempts to take over NINL in 2007, 2010 and 2014 did not materialize due to interventions by the Ministry of Commerce and Industry.

The merger of NINL will complement SAIL’s massive expansion plans to more than double its steel making capacity by 2031. Incidentally, NINL is s the country’s largest exporter of saleable pig iron since many years.