Tata Steel on Tuesday evinced its interest for acquiring stake in Odisha-based steel maker Neelachal Ispat Nigam Ltd (NINL).
NINL is a joint venture company, in which four central PSUs — MMTC, National Mineral Development Corporation (NMDC), Bharat Heavy Electricals Ltd (BHEL) and MECON — and two Odisha government companies IPICOL and Odisha Mining Corporation (OMC) are shareholders.
In January 2020, the Centre gave in-principle approval for strategic sale of NINL by allowing the six PSU shareholders to sell their stake in the steel company.
“NINL plant is something we will look at whenever it is available… depending on our discussions on the board level,” Tata Steel Chief Executive Officer (CEO) and Managing Director T V Narendran said in a conference call.
He, however, did not elaborate on it further.
The strategic buyer for NINL will be identified through a two-stage auction procedure, the government had earlier said. The government had said it expects that the successful strategic buyer may bring in new management/technology/investment for the growth of the company and may use innovative methods for the development of the business operations of the company, which may generate more employment opportunities.
Operations at 1.1 million tonne integrated NINL plant at Kalinganagar, where Tata Steel also owns and operates its 3 MTPA plant in Odisha, are suspended at the moment.
NINL has its own captive power plant to meet the internal power requirement and air separation unit for producing oxygen, nitrogen and argon. Besides, the company also has its own captive iron ore mines which are under development.
Source: Economic Times