Several Steel Makers Interested in NINL
Business Standard reported that Tata Steel, ArcelorMittal Nippon Steel India and Vedanta’s ESL Steel may participate in the strategic disinvestment of
Business Standard reported that Tata Steel, ArcelorMittal Nippon Steel India and Vedanta’s ESL Steel may participate in the strategic disinvestment of Neelachal Ispat Nigam Ltd. The Cabinet Committee on Economic Affairs had given an in principle on January 8 for disinvestment of 93.71% stake in NINL to a strategic buyer identified through a two-stage auction procedure. The due date for expression of interest for NINL is March 29.
AM/NS India CEO Mr Dilip Oommen said “We always look for growth opportunities. Therefore, we are evaluating participation in NINL disinvestment programme as well.”
ESL Steel CEO Mr Pankaj Malhan said, “We are serious about the asset. We are a long products company and it’s a logical extension. “Also, with the kind of focus that the government of India has on infrastructure, we would like to bet big on longs.”
NINL is a 1.1 million tonne unit, producing pig iron and billets and is located in the Kaliganagar Industrial Complex in Duburi in Odisha. NINL is jointly owned by central and state PSUs with MMTC, IPICOL, NMDC, OMC as major shareholders. Incorporated in 1982, the NINL plant was set up in phases; in phase I, the company set up the blast furnace to produce pig iron, which was commissioned in 2002. Supporting facilities like sinter plant, coke oven plant, power plant, were commissioned subsequently. In Phase II, the steel melting shop was installed for producing billets. NINL has also been allotted a captive iron ore mine in Odisha having an estimated mineable reserve of around 90.91 million tonne.