Shipping Corporation, NMDC Steel Selloff To Accelerate Post-Election
The government expects to vigorously pursue the privatisation of SCI and NMDC Steel after the elections, banking on heightened investor interest
The disinvestment process for state-run Shipping Corporation of India (SCI) and NMDC Steel is poised to gain momentum following the general elections in early June. The government is finalising the board composition of Shipping Corporation of India Land and Assets Ltd (SCILAL), a new entity formed to segregate SCI’s non-core real estate assets in compliance with listing requirements.
Soon after the separated company, SCILAL, is listed, the Centre will request financial offers for its whole 63.75% ownership in SCI. Although SCI's primary assets will be privatised, SCILAL will continue to be owned by the government.
In a key development last year, the Maharashtra government waived stamp duty for SCILAL’s demerger, simplifying the listing procedures. The government expects to vigorously pursue the privatisation of SCI and NMDC Steel after the elections, banking on heightened investor interest.
The listing of SCILAL is set to establish a reserve price for SCI, with the government's stake valued at approximately Rs 7,800 crore based on current stock prices.
The selloff of NMDC Steel’s 50.79 per cent stake will also commence post-election. This follows the operationalization of its steel plant in Nagarnar last year. The government's strategy focuses on divesting NMDC Steel's steel-making operations while retaining the mining division under NMDC.
The privatisation efforts are part of a broader strategy to increase efficiency and attract private investment in key sectors of the economy. The government's move to finalise the board composition of SCILAL and the upcoming selloff of significant stakes in SCI and NMDC Steel signal a robust approach towards disinvestment, aiming to streamline operations and maximise returns from these state-run enterprises.
