The Business Bytes
TBB BUREAU
BHUBANESWAR, JANUARY 31, 2022
The Union government on Monday approved sale of Neelachal Ispat Nigam Ltd (NINL) to Tata Steel Long Products Ltd for Rs 12,100 crore.
A joint venture of MMTC, NMDC, BHEL, MECON, OMC and IPICOL, NINL has a 1.1 million tonnes (MT) capacity integrated steel plant at Kalinganagar in Odisha. The plant is closed since March 30, 2020 due to heavy loss.
Three companies — Consortium of Jindal Steel & Power Limited and Nalwa Steel and Power Ltd; JSW Steel Limited; and Tata Steel Long Products Limited (TSLP) — had put in financial bids for buying NINL.
TSLP emerged as the highest bidder, and its bid has been accepted. Letter of Intent (LoI) is being issued to TSLP inviting them to sign the share purchase agreement (SPA). The government approves strategic buyer for NINL located in Odisha. The highest bid of Rs 12,100 crore by M /s Tata Steel Long Products Ltd is accepted, DIPAM Secretary Tuhin Kanta Pandey tweeted.
NINL has huge debt and liabilities exceeding Rs 6,600 crore as on March 31, 2021, including huge overdues of promoters (Rs 4,116 crore), banks (Rs 1,741 crore), other creditors and employees.
