Centre plans to cut MSTC stake to 65 Percent

Centre plans to cut MSTC stake to 65 Percent

The Centre is planning to reduce its stake in MSTC from 89.8% to about 65%, through an offer for sale, A.K. Basu, director, finance of the company said, adding it will enable listing of the company.

“Tenders have already been floated in this regard,” he said while addressing a press conference with MSTC chairman, B B Singh.

MSTC, a mini ratna public sector undertaking under the Union Steel Ministry, was established in September 1964 to act as a small trading company for ferro alloys at an investment of ₹6 lakh. Historically, the Steel Arc Association and another industry association had held the balance equity.

MSTC was among the 11 Central Public Sector Enterprises whose listing was approved by the Cabinet Committee on Economic Affairs in April 2017.

To a question on its auto shredding joint venture with Mahindra, Mr. Singh said the company was currently scouting for land around the National Capital Region for setting up a collection centre.

The shredding facility is likely to come up in Gujarat. “It is also possible that more units are set up in Maharashtra or Chennai later,” Mr. Singh said. The shredded scrap would be used by the secondary steel makers for making auto-grade steel. India currently imports six million tonnes of scrap.

Source: The Hindu