In Odisha, the Department of Investment and Public Asset Management (DIPAM) completed the strategic disinvestment process of Neelachal Ispat Nigam Limited (NINL) on 4 July.
The disinvestment transaction was completed with the transfer of 93.7 per cent shares of the Joint Venture partners namely, MMTC, NMDC, BHEL, MECON.
All four are Central Public Sector Enterprises and two PSUs of Government of Odisha, OMC and IPICOL to the strategic buyer Tata Steel Long products Limited.
The acquisition is completed in accordance with the terms and conditions of the share sale and purchase agreement entered into on March 10, 2022 and as per the procedure of Department of Disinvestment and Public Asset Management (DIPAM).
The total consideration paid by TSLP is Rs 12,100 crore.
NINL is the second successful privatization of the present government.
Air India, the first company in the privatization list, was also bought by the Tata group.
There is also a plan to increase the capacity of NINL to 10 million tonnes per annum by 2030.
The NINL was non-functional for over two years.
NINL was not functioning for more than two years and was running at a loss.
The disinvestment of the NINL will open up a big investment window in Odisha.
About Tata Steel
Tata Steel was established in India in 1907 as Asia's first integrated private steel company.
It is one of the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum.
It is spread across five continents with an employee base of over 65,000 including its subsidiaries, affiliates and joint ventures.
Tata Steel has won several awards including World Economic Forum's Global Lighthouse Recognition for its Jamshedpur, Kalinganagar and I Jamuiden plants.
It has won the Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17.
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