Correct Answer : Option (B) - Tata group
In its second acquisition of a public sector undertaking (PSU) within a week. The Tata group has bagged a majority stake in Neelachal Ispat Nigam (NINL), giving a strong push to the government’s privatisation drive, showcasing the interest of marquee private sector investors in the Centre’s assets.
The Alternate Mechanism, comprising Union Ministers Nitin Gadkari, Nirmala Sitharaman, and Piyush Goyal, approved the divestment of the 93.7 per cent stake held in NINL by four central PSUs and two companies of the Odisha government, to Tata Steel Long Products (TSLP) at an enterprise value of Rs 12,100 crore.
The reserve price for the PSU was set at Rs 5,616.97 crore, and approved by the Cabinet Secretary-headed Core Group of Secretaries on Divestment. The Tata Group arm beat bids submitted by two other bidders, including a consortium of Jindal Steel & Power and Nalwa Steel and Power, and JSW Steel.
As the Centre does not directly own any stake in NINL, the sale will not lead to any divestment receipts for the exchequer.
Source : Business Standard
