Vizag Steel: Government invites bids from IBBI-registered firms for valuing assets of privatisation-bound RINL

The government has invited bids from firms for valuing the assets of privatisation-bound RINL or Vizag Steel.

The Cabinet Committee of Economic Affairs (CCEA) on January 27 gave 'in-principle' approval for 100 per cent disinvestment of government stake in Rashtriya Ispat Nigam Limited (RINL), also called Visakhapatnam Steel Plant or Vizag Steel, alongwith RINL's stake in its subsidiaries/joint ventures.

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The Department of Investment and Public Asset Management (DIPAM), which manages the government's equity in public sector companies, on March 11 floated the request for proposal (RFP) for appointing an asset valuer registered with the Insolvency and Bankruptcy Board of India (IBBI) to carry out the valuation of the company's assets and assist the Centre in the process of strategic disinvestment of RINL.

The last date for putting bids is April 4.

The valuer would be required to carry out the valuation of all assets of RINL, subsidiaries and joint ventures, including their plant and machinery, land and buildings, furniture, civil infrastructure and associated intangibles on "as is where is basis".

To be eligible, the bidder should be a company or limited liability partnership (LLP) firm or registered partnership firm. The bidder is required to have successfully completed at least one valuation assignment of similar nature with an asset value of Rs 5,000 crore or more.

The government has revised its realisation estimates from CPSE disinvestment to Rs 78,000 crore in the current fiscal. For next fiscal, the receipts are budgeted at Rs 65,000 crore.