The Indian government has given the green light for the privatization of Ferro Scrap Nigam Ltd (FSNL), selling it to Japanese company Konoike Transport Co Ltd for ₹320 crore. FSNL, a wholly owned subsidiary of MSTC Ltd, falls under the purview of the Steel Ministry. The government received two financial bids deemed technically qualified for the acquisition of the company.
An Alternative Mechanism, which includes Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman, and Steel Minister H. D. Kumaraswamy, has approved Konoike’s bid, which was the highest at ₹320 crore.
This bid not only exceeds the reserve price of ₹262 crore, established based on assessments by the Transaction Adviser and Asset Valuer, but also ensures the transfer of 100% equity shareholding and management control. The only other bid came from Indic Geo Resources Pvt. Ltd., a subsidiary of Chandan Steel Ltd.
Konoike Transport Co Ltd is a diversified Japanese corporation listed on the Tokyo Stock Exchange. The company’s Steel Division has over 140 years of experience in steelworks, offering a wide range of services that encompass raw material handling, manufacturing processes, slag treatment, and scrap processing. Additionally, Konoike engages in recycling initiatives aimed at minimizing industrial waste.
Founded on March 28, 1979, FSNL specializes in the recovery and processing of scrap generated during iron and steel production across various steel plants, contributing to efficient resource management in the industry.
