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Facts to Remember

Tata Steel would purchase NINL for Rs 12,100 crore.

This is the country's first privatisation of a state steel production firm.

Neelachal Ispat Nigam Ltd is a company based in Neelachal, India (NINL)

NINL is a joint venture between four CPSEs (MMTC, BHEL, NMDC, and MECON) and two Odisha government PSUs (OMC and IPICOL). It operates an integrated steel factory in Kalinganagar, Odisha, with a 1.1 million-tonne capacity (MT). However, it has been losing a lot of money and has been shut down since March 30, 2020.

As of March 31, 2021, NINL has accumulated debt and liabilities totalling more than Rs 6,600 crore. It also contains massive promoter (Rs 4,116 crore) and bank (Rs 1,741 crore) overdues, as well as workers and other creditors. As of March 2021, the firm has a negative net value of Rs 3,487 crore and cumulative losses of Rs 4,228 crore.

Bids to purchase NINL

Three businesses had made financial proposals to purchase NINL: Consortium of Jindal Steel & Power Limited and Nalwa Steel & Power Ltd; Tata Steel Long Products Limited (TSLP); and JSW Steel Limited. TSLP was chosen as the H1 bidder, and its offer was approved. To invite TSLP to execute the share acquisition agreement, a letter of intent (LoI) shall be sent (SPA). TSLP will be required to pay 10% of the bid value at this time. A offer of Rs 12,100 crore was submitted by Tata.

Tata Steel Long Products is one of India's most important speciality steel mills. It has a capacity of one million tonnes per year. It is actively involved in the creation of employment, livelihood, skill development, and education possibilities in plant and mining operations.

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