Indian Government’s Cabinet Committee on Economic Affairs has approved the highest bid of Tata Steel Long Products Limited for 93.71% of shares of Neelachal Ispat Nigam Ltd Joint Venture partners of 4 CPSEs and 2 Odisha Govt State PSEs at the Bid Enterprise Value of INR 12,100 crore.CCEA in-principle approved strategic disinvestment of Neelachal Ispat Nigam Ltd on 8 January 2020 and had authorised Department of Disinvestment & Public Asset Management to undertake the transaction. The Expressions of Interest were invited on 25 anuary 2021. Bids from Jindal Steel & Power Limited and Nalwa Steel and Power Ltd, JSW Steel Limited & Tata Steel Long Products Limited were received by the due date of 23 December 2021. Reserve Price was subsequently recommended by the IMG after detailed examination of the valuation reports prepared by the TA and the AV, and was approved by the CGD at INR 5616.97 crore. Tata Steel Long Products Limited emerged as H-1 bidder. Letter of Intent is being issued to Tata Steel Long Products Limited inviting them to sign the SPA. At this stage, 10% of the bid amount shall be paid by the successful bidder into the Escrow account. On the closure date, shares will be transferred to the strategic buyerNeelachal Ispat Nigam Ltd has been running in huge losses and plant is closed since March 2020. The company has huge debt and liabilities exceeding INR 6,600 crores as on 31.3.2021, including INR 4,116 crore overdues of promoters, INR Rs 1,741 crore of banks, other creditors and employees. The company has negative networth of INR 3,487 crore and accumulated losses of INR 4,228 crore as of 31.3.2021.Neelachal Ispat Nigam Limited was incorporated in 1982 to set-up an Integrated Steel Plant to undertake manufacturing and sale of steel products. NINLs manufacturing unit is located at Kalinganagar Industrial Complex, Duburi in Odisha. The Company has built its manufacturing facility in two phases. In Phase I, the Company had set up the blast furnace of 1.1 million tonne per annum to produce pig iron which was commissioned in 2002. Subsequently, other supporting facilities like Sinter plant, Coke oven plant, Power plant were commissioned. The Company thereafter set up a Steel Melting Shop with installed capacity of 897,000 tonnes per annum for producing billets as Phase II capacity expansion plan along with Continuous Casting Shop, Ladle Furnace, Billet Caster and other auxiliary facilities which were commissioned during FY 2014. NINL has also been allotted a captive iron ore mine in Odisha having an estimated mineable reserve of around 90.91 million tonne. The major shareholders of NINL include MMTC 49.78%, NMDC 10.10%, MECON 0.68%, BHEL 0.68%, IPICOL 12.00% and OMC 20.47%.Tata Steel Long Products, formerly known as Tata Sponge Iron Limited, is in the business of manufacturing high alloy steel, primarily for the auto sector and wire rope industry. With one million tonne capacity, it is one of the largest specialty steel plants in India in long product segment.
Indian Government’s Cabinet Committee on Economic Affairs has approved the highest bid of Tata Steel Long Products Limited for 93.71% of shares of Neelachal Ispat Nigam Ltd Joint Venture partners of 4 CPSEs and 2 Odisha Govt State PSEs at the Bid Enterprise Value of INR 12,100 crore.CCEA in-principle approved strategic disinvestment of Neelachal Ispat Nigam Ltd on 8 January 2020 and had authorised Department of Disinvestment & Public Asset Management to undertake the transaction. The Expressions of Interest were invited on 25 anuary 2021. Bids from Jindal Steel & Power Limited and Nalwa Steel and Power Ltd, JSW Steel Limited & Tata Steel Long Products Limited were received by the due date of 23 December 2021. Reserve Price was subsequently recommended by the IMG after detailed examination of the valuation reports prepared by the TA and the AV, and was approved by the CGD at INR 5616.97 crore. Tata Steel Long Products Limited emerged as H-1 bidder. Letter of Intent is being issued to Tata Steel Long Products Limited inviting them to sign the SPA. At this stage, 10% of the bid amount shall be paid by the successful bidder into the Escrow account. On the closure date, shares will be transferred to the strategic buyerNeelachal Ispat Nigam Ltd has been running in huge losses and plant is closed since March 2020. The company has huge debt and liabilities exceeding INR 6,600 crores as on 31.3.2021, including INR 4,116 crore overdues of promoters, INR Rs 1,741 crore of banks, other creditors and employees. The company has negative networth of INR 3,487 crore and accumulated losses of INR 4,228 crore as of 31.3.2021.Neelachal Ispat Nigam Limited was incorporated in 1982 to set-up an Integrated Steel Plant to undertake manufacturing and sale of steel products. NINLs manufacturing unit is located at Kalinganagar Industrial Complex, Duburi in Odisha. The Company has built its manufacturing facility in two phases. In Phase I, the Company had set up the blast furnace of 1.1 million tonne per annum to produce pig iron which was commissioned in 2002. Subsequently, other supporting facilities like Sinter plant, Coke oven plant, Power plant were commissioned. The Company thereafter set up a Steel Melting Shop with installed capacity of 897,000 tonnes per annum for producing billets as Phase II capacity expansion plan along with Continuous Casting Shop, Ladle Furnace, Billet Caster and other auxiliary facilities which were commissioned during FY 2014. NINL has also been allotted a captive iron ore mine in Odisha having an estimated mineable reserve of around 90.91 million tonne. The major shareholders of NINL include MMTC 49.78%, NMDC 10.10%, MECON 0.68%, BHEL 0.68%, IPICOL 12.00% and OMC 20.47%.Tata Steel Long Products, formerly known as Tata Sponge Iron Limited, is in the business of manufacturing high alloy steel, primarily for the auto sector and wire rope industry. With one million tonne capacity, it is one of the largest specialty steel plants in India in long product segment.
