Indian steel market, page-2

Proposal to create PSU steel giant in India through merger

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Steel News - Published on Wed, 03 Oct 2018

Image Source: Reuters
Financial Express reported that Indian government will examine a proposal by the steel ministry to first merge the loss-making steel firm Neelachal Ispat Nigam (NINL) with Rashtriya Ispat Nigam (RINL) and then merge it with Steel Authority of India (SAIL) to create a single state-owned steel manufacturer to bring in efficiency. Similarly, it has also suggested consolidation of profitable iron ore mining companies NMDC and KIOCL. In a presentation to Prime Minister Narendra Modi in April, chiefs of central PSUs had proposed the creation of public sector behemoths by consolidating firms based on commonalities of functions to benefit from economy of scale, global competitiveness and access to cheaper capital. Modi had asked the PSUs and administrative ministries to prepare an action plan on this.

An official told FE “There is scope for merger of these companies. A detailed analysis needs to be done.”

Integration of CPSEs engaged in the same business line would limit the number of CPSEs in a sector and create profitable entities which will have capacity to bear higher risks, take higher investment decisions and create more value for stakeholders, officials reckon. Bigger entities would be able to raise cheaper funds and reduce their dependence on the government.
Source : Financial Express

behemoths
behemoth
bɪˈhiːmɒθ,ˈbiːhɪˌməʊθ/
noun
plural noun: behemoths

1. a huge or monstrous creature.
   "behemoths like the brontosaurus"
   • something enormous, especially a large and powerful organization.
     
     
     
     ECT the brains behind the brontosaurus