Govt approves sale of NINL to Tata Steel Long Products

01 Feb 2022 CW Team

The government has approved the sale of Neelachal Ispat Nigam Limited (NINL) to Tata Steel Long Products Limited (TSLP) for Rs 12,100 crore.

Moreover, the Committee of Economic Affairs has approved the highest bid of Tata Steel Long Products for 97.71% of shares of the joint venture (JV) of four Central Public Sector Enterprises (CPSEs) and two Odisha government Public Sector Enterprises (PSEs) at the bid enterprise value of Rs 12,100 crore.

NINL is a JV of four CPSEs, including Metals and Minerals Trading Corporation of India Limited (MMTC), National Mineral Development Corporation Limited (NMDC), Bharat Heavy Electricals Limited (BHEL), Metallurgical & Engineering Consultants India Limited (MECON) and two Odisha government PSUs, including Odisha Mining Corporation Limited (OMC) and Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL).

NINL has an integrated steel plant having a capacity of 1.1 million tonnes (mt) at Kalinganagar in Odisha. It is under huge debt and liabilities of over Rs 6,600 crore and overdue of the promoters of Rs 4,116 crore, banks of Rs 1,71 crore and other creditors and employees.

According to a statement, the company has a negative net worth of Rs 3,487 crore, with accumulated losses of Rs 4,228 crore.

The transaction was made through a combination of open-market and competitive bidding processes. The transaction was executed via a multi-layered decision mechanism-based procedure involving Inter-Ministerial Group (IMG), Core Group of Secretaries on Disinvestment (CGD) and the empowered Alternative Mechanism, Odisha government with their companies like Odisha Mining Corporation Limited (OMC) and Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) having a stake of 32.47%, present during decision making.

The Expressions of Interest (EoI) were also invited, which received many responses. The Share Purchase Agreement (SPA) was finalised and shared with the interested bidders, with the REF issued for inviting financial bids.

The financial bids were opened, which concluded the following bidders, Consortium of Jindal Steel and Power Limited and Nalwa Steel and Power Limited, JSW Steel Limited and Tata Steel Long Products Limited (TSLP).

TSLP emerged as the highest bidder (H-1) and was issued the Letter of Intent (LoI). About 10% of the bidding amount should be paid by the successful bidder.

It is the first privatisation of the steel manufacturing enterprise in India. It will boost the local economy as the local buyers can revive near the plant, bring in modern technology, best managerial practices, and infuse new capital.

Image Source

Also read: Govt urges steel makers to provide relief to MSME sector

The government has approved the sale of Neelachal Ispat Nigam Limited (NINL) to Tata Steel Long Products Limited (TSLP) for Rs 12,100 crore. Moreover, the Committee of Economic Affairs has approved the highest bid of Tata Steel Long Products for 97.71% of shares of the joint venture (JV) of four Central Public Sector Enterprises (CPSEs) and two Odisha government Public Sector Enterprises (PSEs) at the bid enterprise value of Rs 12,100 crore. NINL is a JV of four CPSEs, including Metals and Minerals Trading Corporation of India Limited (MMTC), National Mineral Development Corporation Limited (NMDC), Bharat Heavy Electricals Limited (BHEL), Metallurgical & Engineering Consultants India Limited (MECON) and two Odisha government PSUs, including Odisha Mining Corporation Limited (OMC) and Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL). NINL has an integrated steel plant having a capacity of 1.1 million tonnes (mt) at Kalinganagar in Odisha. It is under huge debt and liabilities of over Rs 6,600 crore and overdue of the promoters of Rs 4,116 crore, banks of Rs 1,71 crore and other creditors and employees. According to a statement, the company has a negative net worth of Rs 3,487 crore, with accumulated losses of Rs 4,228 crore. The transaction was made through a combination of open-market and competitive bidding processes. The transaction was executed via a multi-layered decision mechanism-based procedure involving Inter-Ministerial Group (IMG), Core Group of Secretaries on Disinvestment (CGD) and the empowered Alternative Mechanism, Odisha government with their companies like Odisha Mining Corporation Limited (OMC) and Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) having a stake of 32.47%, present during decision making. The Expressions of Interest (EoI) were also invited, which received many responses. The Share Purchase Agreement (SPA) was finalised and shared with the interested bidders, with the REF issued for inviting financial bids. The financial bids were opened, which concluded the following bidders, Consortium of Jindal Steel and Power Limited and Nalwa Steel and Power Limited, JSW Steel Limited and Tata Steel Long Products Limited (TSLP). TSLP emerged as the highest bidder (H-1) and was issued the Letter of Intent (LoI). About 10% of the bidding amount should be paid by the successful bidder. It is the first privatisation of the steel manufacturing enterprise in India. It will boost the local economy as the local buyers can revive near the plant, bring in modern technology, best managerial practices, and infuse new capital. Image Source Also read: Govt urges steel makers to provide relief to MSME sector

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..