Tata Steel wraps up acquisition of stake in Neelachal Ispat Nigam Limited
Tata Steel said that its subsidiary Tata Steel Long Products has closed the previously announced INR 12,100 crores acquisition of a 93.71% stake in Neelachal Ispat Nigam Limited (NINL), an integrated iron and steel plant in Kalinganagar, Odisha.
The stake in the 1.1-million-ton iron and steel plant in Kalinganagar was acquired from MMTC, NMDC, MECON, Bharat Heavy Electricals (BHEL), Industrial Promotion and Investment Corporation of Odisha, Odisha Mining Corporation, President of India, and the Odisha government.
The deal was announced earlier this year.
Neelachal Ispat Nigam Limited is located near Tata Steel’s facility at Kalinganagar and is said to be a strategic acquisition for the latter as it offers synergies of shared infrastructure, resources, management, and others as well as scope to construct a dedicated and sustainable long products complex.
Tata Steel wraps up acquisition of 93.71% stake in Neelachal Ispat Nigam Limited. Photo courtesy of Tata Steel.
Tata Steel said that intends to expeditiously restart the Neelachal Ispat Nigam Limited steel plant, besides simultaneously working to grow the capacity by constructing a 4.5 million tons per annum long products complex in the next few years, and ramp it up further to 10 million tons per year by the end of this decade.
T. V. Narendran — Tata Steel CEO and Managing Director and Tata Steel Long Products Chairman 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.”