The Indian government has approved the sale of Ferro Scrap Nigam Ltd (FSNL) to Japan's Konoike Transport Co Ltd for Rs 3.2 billion. FSNL, a 100% subsidiary of MSTC Ltd under the Steel Ministry, will see its entire equity shareholding transferred to Konoike, along with management control.

The decision was made by an Alternative Mechanism comprising Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman, and Steel Minister H. D. Kumaraswamy. Konoike's bid of Rs 3.2 billion surpassed the reserve price of Rs 2.62 billion, set based on valuations by the government’s Transaction Adviser and Asset Valuer.

Two technically qualified financial bids were received for the strategic sale, with Konoike Transport emerging as the highest bidder. The second bid was from Indic Geo Resources Pvt. Ltd., a subsidiary of Chandan Steel Ltd.

Konoike Transport Co Ltd, listed on the Tokyo Stock Exchange, is a diversified Japanese company with extensive experience in steelworks operations. Its Steel Division, with over 140 years in the industry, offers a range of services including raw material acceptance, manufacturing support, slag treatment, and scrap processing. The company also specializes in recycling initiatives that aim for zero secondary waste.

FSNL, incorporated in 1979, provides steel mill services such as scrap recovery and processing from slag generated during iron and steel production across various steel plants in India. (Business Standard)