Sunday, 18 June 2017

Centre plans to divest near 25% stake in MSTC

The Centre is planning to bring down its stake in MSTC, the company’s Director (Finance) AK Basu said here on Thursday. The Centre’s stake in the Miniratna PSU currently stands at over 89 per cent.
The remaining 10-odd per cent is held by various industry associations.
According to Basu, the plan is to opt for an “offer-for-sale” and not an IPO to bring down the stake to 65 per cent.
“The government’s stake post-dilution will stand at 65 per cent,” he told reporters on the sidelines of the foundation stone-laying ceremony of its corporate building in the satellite township of New Town on the north eastern fringes of the city.
He further maintained that the company was also exploring options to divest stake in its subsidiary Ferro Scrap Nigam.
Having reported a turnover of ₹51,000 crore last fiscal, it is eyeing 10-20 per cent growth this fiscal. “We should cross ₹60,000 crore at least,” Basu said.
JV with Mahindra

Meanwhile, BB Singh, CMD, MSTC, pointed out that the company would invest close to ₹120 crore to set up its auto shredding and vehicle recycling unit. It has already entered into a joint venture with Mahindra Intertrade in this regard.
According to the CMD, around ₹20 crore will be spent towards purchasing eight acres of land around Delhi and NCR (national capital region). The collection unit will be set up on this parcel of land.
Shredding unit

Plans are also afoot to set up a shredding unit — for dismantling vehicles — with Dahej (Gujarat), NCR and Chennai being the probable destinations.
The proposed shredding and dismantling unit — with a capacity of one lakh tonnes a year — is expected to help reduce India’s dependence on imports for shredded scrap. Nearly, six million tonnes is imported every year at an appropriate cost of $2 billion. The shredding unit is a part of the ₹120-crore project and a joint venture with Mahindra Intertrade.
MSTC will also focus on the north eastern States as thrust area. It will look to increase its portfolio of auction offerings to include agri produce (from the region) apart from forest products and metal scrap.

Sandip Ginodia , Director 

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