Government Approves Rs 320 Crore Privatisation of Ferro Scrap Nigam Ltd

The Indian government approved the privatization of Ferro Scrap Nigam Ltd (FSNL) by selling it to Japanese firm Konoike Transport Co Ltd for Rs 320 crore. FSNL, a subsidiary of MSTC Ltd under the Steel Ministry, specializes in scrap recovery and processing. Konoike outbid Indic Geo Resources Pvt. Ltd.

The Indian government has officially sanctioned the privatisation of Ferro Scrap Nigam Ltd (FSNL), selling the 100 per cent equity shareholding of MSTC Ltd in FSNL to Japanese corporation Konoike Transport Co Ltd for Rs 320 crore.

FSNL, fully owned by MSTC Ltd under the Steel Ministry, received two technically qualified financial bids. The winning bid came from Konoike Transport Co Ltd, surpassing the reserve price of Rs 262 crore set by government-appointed valuers.

The bid approval was granted by a high-level Alternative Mechanism panel, which included Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Steel Minister H. D. Kumaraswamy. Konoike Transport Co Ltd's steel division, with 140 years of experience, will now control FSNL, a company specialized in scrap recovery from slag generated during iron and steel making.

(With inputs from agencies.)