Setting the ball rolling for Rashtriya Ispat Nigam Ltd to acquire majority stakes in three iron ore companies and two others, the Steel Ministry will soon send a proposal to the Cabinet in this regard.
The five ailing state-run companies — Orissa Mineral Development Corporation (OMDC), Bisra Stone Lime Co (BSLC), Karanpura Development Co (KDCL), Scott & Saxyby (SSL) Eastern Investments Ltd (EIL) — also known as the Bird Group of Companies.
“The steel ministry will soon move the Cabinet with a plan to revive the Bird Group of Companies in which Rashtriya Ispat Nigam Ltd (RINL) will acquire majority stake,” a senior steel ministry official said.
The official note for the proposal is ready and would be sent to the Cabinet shortly, he said. The firms would be made RINL’s subsidiaries, he added.
As per the 100-day agenda unveiled by the ministry last month, RINL has been identified as a strategic partner for acquiring controlling stakes in the Bird Group.
The arrangement is going to benefit both RINL and the BGC as the steel-maker is undertaking a Rs 12,000-crore expansion project and would get the much-needed raw material security with the acquisition of OMDC. The five PSUs would get the required funds and managerial expertise for the revival.