Centre approves Tata Steel Long Products bid to buy Neelachal Ispat Nigam

The Centre has approved Tata Steel Long Products’ bid to buy steel producer Neelachal Ispat Nigam, according to reports.

The Centre’s ‘Alternative Mechanism’ approved the bid for buying 93.71 per cent of shares of JV partners of four CPSEs and two Odisha state government PSEs at the bid enterprise value of Rs 12,100 crore.

“However, on the request of the Boards of selling shareholder PSEs and on concurrence by the Govt of Odisha, the CCEA ‘in principle’ approved strategic disinvestment of NINL on January 8, 2020, and authorised Department of Disinvestment & Public Asset Management (DIPAM) to undertake the transaction,” the statement said.

At present, NINL has an integrated steel plant with a capacity of 1.1 MT, at Odisha’s Kalinganagar.

The company has been running in huge losses and the plant has been closed since March 30, 2020. The company has negative networth of Rs 3,487 crore and accumulated losses of Rs 4,228 crore as of March 31, 2021.

(With inputs from IANS)

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