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PMO scraps plan to divest MSTC's subsidiary FSNL

Centre believes FSNL has no tangible assets barring machinery

Press Trust of India  |  New Delhi 

Photo: Twitter
Photo: Twitter

The Prime Minister's Office (PMO) has agreed not to go ahead with the of MSTC's arm Ferro Scrap Nigam (FSNL) as the entity has no tangible assets barring machinery, a top official said.

FSNL, under the administrative control of the Steel Ministry, undertakes disposal of ferrous and non-ferrous scrap arising from integrated steel plants under (SAIL), (RINL), among others and disposal of scrap and surplus stores from other public sector units (PSUs) and government departments.

"We are removing — a subsidiary of — from disinvestment list because it does not have anything. No land. It just has [an] equipment," Steel Secretary Aruna Sharma told PTI.

is a metal scrap trading PSU. It also renders services to steel and petrochemical sectors for raw material support and provides e-commerce services.

"permits them to do the scrap sale or making its pellets as it is a PSU. So it does not make any sense for a buyer because cannot give it to a private person for conversion. So what will anybody do by taking scrap machinery," the Secretary said.

"In the last meeting that I had in PMO they all agreed that it should be removed," the Secretary said.

The Centre had earlier said that it intends to disinvest its equity, which is equivalent to 89.85 per cent of the total voting equity share capital in to a strategic investor along with management control of MSTC and its wholly owned subsidiary through a competitive bidding process.

First Published: Sun, July 23 2017. 14:12 IST