Tata Steel announced that its subsidiary Tata Steel Long Products has completed the acquisition of 93.71% in 1 million tonnes per annum Neelachal Ispat Nigam from MMTC, NMDC, MECON, BHEL & Industrial Promotion & Investment Corporation of Odisha, Odisha Mining Corporation, President of India and Government of Odisha. The acquisition has been completed as per the terms and conditions of the Share Sale and Purchase Agreement entered on 10 March 2022 and in accordance with the process being run by Department of Disinvestment & Public Asset Management. The aggregate consideration which has been paid out by Tata Steel Long Products is INR 12,100 crore.Tata Steel CEO & Managing Director Mr TV Narendran said “Acquisition of Neelachal Ispat Nigam Limited is a historic achievement and a significant milestone towards building dedicated long products facility for the Tata Steel Group. The completion of the transaction is a testimony to Government of India’s focus on its disinvestment programme. The acquisition also reflects Tata Steel’s commitment to the State of Odisha and the communities around its operations.”Located in the close proximity to Tata Steel’s state-of-the-art facility at Kalinganagar, NINL is a strategic acquisition for Tata Steel as it provides synergies of shared infrastructure, resources, management etc and an opportunity to build a dedicated and sustainable long products complex. The plan is to not only restart the one million tons per annum steel plant expeditiously but to also work simultaneously to expand the capacity by building a 4.5 million tonnes per annum state-of-the-art long products complex in the next few years, and further expand it to 10 million tonnes per annum by 2030. NINL was incorporated in 1982 to set-up an integrated steel plant to undertake manufacturing and sale of steel products. NINL initially set up a 1.1 million tonne per annum blast furnace in 2002 to produce pig iron. Subsequently, other supporting facilities like sinter plant, coke oven plant, power plant, etc. were commissioned. In January 2022, the Company had been identified as the winner of the bidding process to acquire a 93.71% equity stake in NINL in accordance with the process being run by DIPAM, Government of India. Further, on February 2, 2022, DIPAM issued the Letter of Award to TSLP for acquisition of 93.71% equity stake of NINL. The Company accepted the said Letter of Award on February 9, 2022. The revenue of NINL for the previous 3 financial years (as per the latest available audited balance sheet) is as follows:FY2020-21: INR 24 croreFY2019-20: INR 941 croreFY2018-19: INR 2,025 crore
Tata Steel announced that its subsidiary Tata Steel Long Products has completed the acquisition of 93.71% in 1 million tonnes per annum Neelachal Ispat Nigam from MMTC, NMDC, MECON, BHEL & Industrial Promotion & Investment Corporation of Odisha, Odisha Mining Corporation, President of India and Government of Odisha. The acquisition has been completed as per the terms and conditions of the Share Sale and Purchase Agreement entered on 10 March 2022 and in accordance with the process being run by Department of Disinvestment & Public Asset Management. The aggregate consideration which has been paid out by Tata Steel Long Products is INR 12,100 crore.Tata Steel CEO & Managing Director Mr TV Narendran said “Acquisition of Neelachal Ispat Nigam Limited is a historic achievement and a significant milestone towards building dedicated long products facility for the Tata Steel Group. The completion of the transaction is a testimony to Government of India’s focus on its disinvestment programme. The acquisition also reflects Tata Steel’s commitment to the State of Odisha and the communities around its operations.”Located in the close proximity to Tata Steel’s state-of-the-art facility at Kalinganagar, NINL is a strategic acquisition for Tata Steel as it provides synergies of shared infrastructure, resources, management etc and an opportunity to build a dedicated and sustainable long products complex. The plan is to not only restart the one million tons per annum steel plant expeditiously but to also work simultaneously to expand the capacity by building a 4.5 million tonnes per annum state-of-the-art long products complex in the next few years, and further expand it to 10 million tonnes per annum by 2030. NINL was incorporated in 1982 to set-up an integrated steel plant to undertake manufacturing and sale of steel products. NINL initially set up a 1.1 million tonne per annum blast furnace in 2002 to produce pig iron. Subsequently, other supporting facilities like sinter plant, coke oven plant, power plant, etc. were commissioned. In January 2022, the Company had been identified as the winner of the bidding process to acquire a 93.71% equity stake in NINL in accordance with the process being run by DIPAM, Government of India. Further, on February 2, 2022, DIPAM issued the Letter of Award to TSLP for acquisition of 93.71% equity stake of NINL. The Company accepted the said Letter of Award on February 9, 2022. The revenue of NINL for the previous 3 financial years (as per the latest available audited balance sheet) is as follows:FY2020-21: INR 24 croreFY2019-20: INR 941 croreFY2018-19: INR 2,025 crore
