|
| Rashtriya Ispat to get control of Bird Group |
| BS Reporter / Kolkata Jun 28, 2009, 00:53 IST |
|
 Govt wants RINL to be holding company for Neelachal Ispat Ltd.
Public sector long products major Rashtriya Ispat Nigam Limited (RINL) will have a controlling stake in the Bird Group of companies, including Orissa Mineral Development Corporation (OMDC), which has 200 million tonnes of iron ore reserves.
RINL has been identified as the strategic partner for acquiring controlling stakes in companies of the Bird group. The proposed organisational structure is for OMDC, Bisra Stone Lime Company and Eastern Investments Ltd, which will become subsidiaries of RINL. The restructuring is part of the 100 days agenda of the Union steel ministry.
PK Bishnoi, chairman and managing director, RINL, said the steel ministry had also proposed that RINL be made the holding company for Neelachal Ispat Nigam Limited.
Bishnoi said 50 per cent shares of MMTC, which were to go to Steel Authority of India Ltd (SAIL), were likely to go to RINL.
Bishnoi said, “It is now being considered whether the shares can go to RINL.” MMTC has 130 million tonnes of iron ore. At present, RINL imports coking coal and has long-term arrangements for iron ore. Access to captive iron ore would make RINL more attractive to investors in the event of a disinvestment.
Bishnoi said the UPA government, in its previous term, was considering disinvestment in RINL. RINL is 100 per cent owned by the government. The government was considering bringing its stake to 75 per cent. The board of directors had passed a resolution to this effect in 2006. RINL is awaiting an announcement from the government on this. Bishnoi said, “Personally, I think that we should bring down our equity first and then go for an IPO. We can buy back the government’s shares.”
At present, the company’s ordinary equity is to the tune Rs 4,800 crore while the preferred equity is around Rs 2,900 crore (to be redeemed in 2011). For the year ended March 2009, RINL posted a turnover of Rs 10,500 crore and a profit after tax of Rs 1,336 crore, a drop of 31.49 per cent from last year.
The government has allotted RINL two coking coal mines in Jharkhand. However, Bishnoi said, “These are difficult mines and we are asking for better mines.”
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
