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Tata Steel Acquires Neelachal Ispat Nigam for Rs 12,100 Crore

Bhubaneswar:4/7/22:In Odisha, the Department of Investment and Public Asset Management, DIPAM, today completed the strategic disinvestment process of the Nilachal Ispat Nigam Limited, NINL. The disinvestment transaction was completed today with the transfer of 93.7 percent shares of the Joint Venture partners, namely MMTC (shareholding of 49.78%), NMDC (10.10%), BHEL (0.68%), MECON (0.68%) and 2 Odisha Government PSUs, namely OMC (20.47%) and IPICOL (12.00%). to the strategic buyer, Tata Steel Long products Limited at an enterprise value of 12100 crore rupees.

MNINL Strategic Disinvestment transaction has been completed today with the transfer of 93.71% shares of the Joint Venture Partners (4 CPSEs and 2 Odisha Govt. PSUs) to the Strategic Buyer, M/s Tata Steel Long products Limited. The Enterprise Value paid by the Strategic Buyer is Rs. 12,100 Crores. This payment has been utilized as per the SPA for settlement of dues of employees, operational creditors, secured financial creditors, and sellers (operational and financial dues) and for equity of selling shareholders as per SPA.

Following approval of the highest price bid of M/s Tata Steel Long Products Limited on 31st January 2022, the Letter of Award (LOA) was issued to the winning bidder on 2nd February 2022. The Share Purchase Agreement (SPA) was signed on 10th March 2022. Thereafter, the Strategic Partner, NINL and the six Selling Shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditors dues, employees’ dues, Sellers’ operational dues and Sellers’ financial dues. These conditions have since been met to mutual satisfaction.

T. V. Narendran, CEO & Managing Director, Tata Steel,and Chairman, Tata Steel Long Products, said: “Acquisition of Neelachal Ispat Nigam Limited (“NINL”) is a historic achievement and a significant milestone towards building a 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.

We are delighted to welcome NINL and its employees to our family. We look forward to the support and commitment of all the stakeholders and employees. It will be Tata Steel’s endeavour to enable a swift transformation of NINL into a state-of-the-art, competitive and sustainable enterprise.

The long products segment in India is poised to witness significant growth as India builds its infrastructure through Government’s Atmanirbhar Bharat Programme along with the pick-up in the retail housing segment in semi-urban India. Tata Steel will leverage its capability in the long products business using its strong brand equity, particularly in the retail construction segment, and its extensive, pan-India retail and distribution network to drive scale in Long Products.

Tata Steel had earlier announced its ambition to increase its capacity to 40 million tons per annum by 2030 in India, and the NINL acquisition strengthens this growth plan over the next decade while providing the enablers to even go beyond the 40 million tons target.

Briefing media in capital Bhubaneswar soon after a meeting with the stakeholders, Tuhin Pandey, Secretary, DIPAM said that with the completion of the disinvestment process, the ownership of the loss-making Nilachal Ispat Nigam Limited has been transferred to the Tata Steel Long Products Limited. He said, the NINL, whose net worth was in the negative to the tune of more than three thousand five hundred crore rupees and which was non-functional for over two years, will now be owned by Tata Steel, thereby adding to the steel production in the country. He said the company, which was producing less than one million tonnes of steel before it was defunct is expected to ramp up its production capacity to five million tonnes in the next 3 to 4 years and further upto ten million tonnes by 2030. Mr. Pandey said that the deal over the disinvestment of the NINL would open up a big investment window in Odisha, thereby contributing tremendously to the economic development not only of the state but also of the entire country

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.
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