Taking forward the drive to sell stake in state-owned firms, the finance ministry has asked the ministry of steel to divest about 10 per cent of its stake in RINL within next two years and list the firm on bourses or else the PSU’s status of Navratna will be withdrawn.
“Rashtriya Ispat Nigam Ltd (RINL) was recently given the Navratna tag. As per the condition laid out at the time of giving the status, RINL has to get listed in next two years, else the status would be withdrawn.
“The Department of Disinvestment under the Finance Ministry has asked the Steel Ministry to divest stake in the company within next two years and get it listed,” a senior official of the PSU said.
At present, the Union government holds 100 per cent equity in the steel maker. According to the steel ministry sources, a minimum of 10 per cent of government’s stake could be sold in RINL through an initial public offer. The department of disinvestment and joint secretary, Mr Sidhartha Pradhan, had earlier said that RINL could be disinvested in January 2011.
RINL could be the fourth steel PSU after NMDC, SAIL and Manganese Ore India Ltd, in which government is going for disinvestment to fund its social and infrastructure plans.
“Before carrying out the disinvestment in RINL, the company is likely to restructure its equity base,” the official said, adding that no estimate has been made of the amount the government would raise through the sale of shares.