India Invites EoI for Strategic Sale of NINL
India’s Department of Investment & Public Asset Management has invited Global Invitation for Expression of Interest for strategic disinvestment of
India’s Department of Investment & Public Asset Management has invited Global Invitation for Expression of Interest for strategic disinvestment of Neelachal Ispat Nigam Limited. The sale will include transfer of management control, mining rights and leasehold rights of land currently held by the public sector enterprise under the steel ministry which makes pig iron and billets.
The Cabinet Committee on Economic Affairs on 8th Jan 2020 had given 'in principle approval for strategic disinvestment of equity shareholding of Neelachal Ispat Nigam Limited to a strategic buyer, identified through a two-stage auction procedure. This Preliminary Information Memorandum and Request for Expression of Interest has been prepared for providing information about the Company and the Transaction to the Interested Bidders and inviting Expressions of Interest from Interested Bidders for the disinvestment of 100% shareholdingNeelachal Ispat Nigam Limited was incorporated in 1982 to set-up an Integrated Steel Plant to undertake manufacturing and sale of steel products. NINL's 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%.