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DIPAM Extends Deadline for Ferro Scrap Nigam Ltd Strategic Sale

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Govt extends deadline for FSNL strategic sale

The Department of Investment and Public Asset Management (DIPAM) has extended the deadline for submission of bids for the strategic disinvestment of Ferro Scrap Nigam Limited (FSNL), a 100 % subsidiary of MSTC Ltd., under the Ministry of Steel.

  • It has extended the deadline by a month to June 6, 2022 (earlier it was May 05, 2022), and clarified that the company is in the process of extending its existing contracts.

The Indian government has also set the disinvestment target of Rs. 65,000 crores for FY23 (2022–2023).


The Cabinet Committee on Economic Affairs granted “in-principle” approval in October 2016 to disinvest the entire equity shareholding held through MSTC in FSNL, through strategic disinvestment and transfer of management control.

Disinvestment of Ferro Scrap Nigam Limited (FSNL)

i.The government has started the process of selling its whole stake in FSNL, which is owned through MSTC Ltd., in a strategic sale that will involve transfer of management control in the public sector undertaking (PSU). BDO India Ltd. has been appointed as the transaction’s advisor by the government. 

  • Interested parties are mandated to submit physical copies of expression of interest (EoI) by June 13, 2022 instead of May 12, 2022, as previously required. Shortlisted bidders will be notified by the government on June 27, 2022, rather than the earlier date of May 25, 2022.

ii.DIPAM announced in a series of clarifications to prospective bidders that it was in the process of obtaining an extension on the existing set of contracts that were slated to expire in FY23 (2022–2023).

iii. It has also clarified that the winning bidder would be needed to fulfil certain conditions related to employee protection, business continuity, asset stripping, lock-in of the transaction’s shares, and or shareholding of consortium members in the special purpose vehicle. The conditions will be specified at the request for proposal or Request for Proposal (RFP) stage.

Track Record of Ferro Scrap Nigam Limited (FSNL)

i.FSNL is the largest recycler in India in terms of the volume of scrap and slag handled across multiple plants. 

ii.The company recorded revenue of Rs. 352.74 crore and profit of Rs. 22.75 crore for FY21 (2020–21). The revenue for the quarter ended September 2021 was Rs. 101.78 crore, and the profit was Rs. 10.63 crore.

iii. According to the government’s preliminary information memorandum, FSNL has a cash balance of Rs. 169.9 crore and Zero debt servicing obligations as of September 30, 2021.

About Ferro Scrap Nigam Limited (FSNL):

FSNL is a Mini Ratna II Central Public Sector Enterprise (CPSE), that is a wholly owned subsidiary of MSTC Limited (previously Metal Scrap Trade Corporation Limited) and is administered by the Ministry of Steel.

  • It was established to provide steel mill services, such as processing steel mill slag to recover iron scrap and other metals.

The company currently operates in eight steel plants across India, specialising in the recovery and processing of scrap from slag and refuse generated during the production of iron and steel.
Incorporated – 1979 
Headquarters – Bhilai, Chhattisgarh.