Govt invites bids from asset valuers for strategic sale of FSNL

The finance ministry on Thursday invited bids from asset valuers to assist the government in the strategic sale of Ferro Scrap Nigam Ltd (FSNL).

FSNL, a miniratna CPSE under the administrative control of the steel ministry, is a 100 per cent subsidiary of MSTC. FSNL provides steel mill services and is currently working through eight steel plants across the country.

"The Department of Investment and Public Asset Management (DIPAM) requires the services of a reputed asset valuer entity registered with the Insolvency and Bankruptcy Board of India (IBBI), to carry out the company's asset valuation...and assist the government in the process of strategic disinvestment of FSNL...till the completion of the transaction," the DIPAM said while inviting bids.

The last date to put in bids is December 6.

The broad scope of work for the asset valuer is to carry out the valuation of all assets of FSNL, including its plant and machinery, land and buildings, furniture, civil infrastructure and associated intangibles on "as is where is basis" and keeping in view the objective of disinvestment, said DIPAM, which manages the government's equity in the CPSE.

During the current financial year 2021-22 so far, Rs 9,329.90 crore has been obtained through a minority stake sale in CPSEs as well as selling SUUTI stake.

The process of privatisation of BPCL, Pawan Hans, BEML, Shipping Corp of India (SCI), Neelachal Ispat Nigam Ltd and RINL is ongoing.

The Budget for 2021-22 has set a disinvestment target of Rs 1.75 lakh crore. Of this, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions, and Rs 75,000 crore will come as CPSE disinvestment receipts.