A high-powered committee has suggested against the merger of ailing mining public sector unit Kudremukh Iron Ore with the country's largest iron ore producer NMDC as a turnaround measure for the PSU's revival.

The Steel Ministry-appointed committee, led by former Kudremukh Iron Ore (KIOCL) CMD P Ganesan, has in fact rejected the option of merger of four sick PSUs — Minerals Sales Trading Corp, Ferro Scrap Nigam, Hindustan Steelworks Construction and KIOCL — under the Ministry as a turnaround measure.     

BSE  |  NSE Price

Click here for Cloud Computing

Also Read   Related Stories News Now - PSU IPOs should be only for retail investors: Prime Database - Advance tax collections shore up in Q2 - IOC may shell out Rs 1,100 cr to buy 5% stake in Oil India - 'We want NMDC to be a multi-faceted organisation' - Govindraj Ethiraj: The fear of a PSU called Jet Airways - B-schools to lure more PSUs for placements this year

Also Read   Related Stories News Now - Wall Street up on Greece, but gains seen limited - FII-TO-FII: Pantaloon traded at 7% premium - Civic polls: Saffron alliance retains Mumbai, Thane - MCX awaits trading rules in commodity options, indices - Govt to provide incentives for electronic chip manufacturing More

The committee has suggested acquisition of iron ore mines by KIOCL besides taking up forward linkage in value-added products for pig iron plant, he said.     

"For MSTC, it has suggested restricting to its core trading and other activities and not financing activities," Rastogi said, adding that the committee is of the view that HSCL should participate in backward integration in the form of pelletising mineral ore and help set up sintering ore facilities. 

For FSNL, a wholly-owned subsidiary of MSTC, the panel has suggested making it a standalone company saying there is no synergy between the two.     

The steel ministry had appointed the committee to suggest ways to strengthen operations of four ailing PSUs. 

Accordingly, the committee deliberated on their business models, physical and financial performance over the years, capital structure, revival models and other issues and came out with the recommendations.     

The steel ministry had accorded top priority to the revival of these units in its 100-day agenda unveiled in June and accordingly the committee was formed.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Wall Street up on Greece, but gains seen limited - FII-TO-FII: Pantaloon traded at 7% premium - Civic polls: Saffron alliance retains Mumbai, Thane - MCX awaits trading rules in commodity options, indices - Govt to provide incentives for electronic chip manufacturing

Tags : NMDC | PSU | Kudremukh Iron Ore | kiocl | hscl | fsnl   Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  Medium-sized businesses are the engines of a smarter planet. -  Save over Rs.3000 with IndianOil Citibank Card -  India's No. 1 Property Site. Click here to know more.. -  Get 5% cashback on telephone bills with Citi -  Diseases earlier, Saving Costs, Extending Lives. Know More.. -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Office 365 for professionals and small businesses. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more