Consultancy firm M.N.Dastur said the government's plan to divest stakes in three units of SAIL and in NMDC's upcoming 3 mtpa steel plant at Nagarnar based on "as-is accounting asset value" is akin to liquidation and may lead to under-recoveries for the firms.
Disinvestment based on intrinsic asset value, taking into account their cash-flow generation capacity, would have been in the best interests of the two firms, it communicated in a letter to Prime Minister's Office (PMO).