 "Government privatizes Ferro Scrap Nigam Ltd, selling it to Japan’s Konoike Transport for Rs 320 crore, exceeding reserve price.")
The Indian government has approved the privatization of Ferro Scrap Nigam Ltd (FSNL), selling it to Japan’s Konoike Transport Co Ltd for Rs 320 crore. FSNL is a subsidiary of MSTC Ltd under the Steel Ministry and specializes in recovering and processing scrap from steel production. Konoike’s bid was the highest among two qualified offers, exceeding the government’s reserve price of Rs 262 crore. Konoike Transport, listed on the Tokyo Stock Exchange, has over 140 years of experience in the steel industry and engages in comprehensive steel services, including recycling projects aimed at minimizing waste. This strategic sale marks a significant step in enhancing FSNL’s operational capabilities.
The Indian government has taken a significant step in the privatisation of Ferro Scrap Nigam Ltd (FSNL), approving the sale of the company to the Japanese firm Konoike Transport Co Ltd for Rs 320 crore. This decision was made on Thursday and marks a key move under the Steel Ministry. FSNL, which is a fully owned subsidiary of MSTC Ltd, aims to enhance efficiency and profitability through this strategic sale.
The government received two financial bids from interested parties, with Konoike Transport offering the highest bid that surpassed the government’s reserve price of Rs 262 crore. The bidding process was approved by an Alternative Mechanism comprised of several ministers, including Transport Minister Nitin Gadkari and Finance Minister Nirmala Sitharaman.
Konoike Transport is a well-established company listed on the Tokyo Stock Exchange, boasting over 140 years of experience in the steel industry. The company’s Steel Division provides comprehensive services related to steel production, from sourcing raw materials to processing and delivery.
FSNL itself was established back in 1979 to provide essential services in steel mills, particularly in the recovery and processing of scrap material from steel production. This privatisation deal is expected to pave the way for increased operational efficiency and innovation in the sector.
As this news unfolds, stakeholders are eager to see how this change will impact the steel industry in India. The focus now transitions to the integration of Konoike Transport’s advanced operational capabilities within FSNL to boost production and promote sustainable practices in the steel sector.
Tags: Ferro Scrap Nigam Ltd, privatisation, Konoike Transport, steel industry, India news
Image Caption: For Sale | Photo: Pexels
Last Updated: September 20, 2024, 12:07 AM IST
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What is FSNL?
FSNL stands for Ferro Scrap Nigam Limited, a company that deals with scrap processing. -
Who is buying FSNL?
FSNL is being sold to Konoike Transport, a company from Japan. -
How much is FSNL being sold for?
The sale is approved for Rs 320 crore. -
Why is the government selling FSNL?
The government is selling FSNL to streamline operations and attract investments. - What does Konoike Transport do?
Konoike Transport is involved in logistics and transportation services in Japan.
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