Multiple Firms Submit EoI for Neelachal Ispat Nigam Ltd
According to media reports Tata Steel Long Products Ltd, JSW Steel Ltd and AM/NS India have submitted expression of interest for the Odisha based state
According to media reports Tata Steel Long Products Ltd, JSW Steel Ltd and AM/NS India have submitted expression of interest for the Odisha based state owned Neelachal Ispat Nigam Ltd by 29 March deadline. Department of Investment and Public Asset Management Secretary Mr Tuhin Kanta Pandey tweeted “Multiple expressions of interest were received for privatisation of NINL. The transaction moves ahead to the second phase, on schedule”.
The Cabinet Committee on Economic Affairs on 8th Jan 2020 had given 'in principle approval for strategic disinvestment of 93.7% 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 had 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% shareholding
Neelachal 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%.