Tata Steel, AMNS, ESL Steel likely participants in NINL disinvestment

Tuesday, 23 March 2021 12:04:34 (GMT+3)   |   Kolkata
       

Indian steel majors Tata Steel, ArcelorMittal Nippon Steel Limited (AMNS) and Vedanta-owned ESL Steel Limited are likely to be participants in the Indian government’s disinvestment of its stake in state-run steel producer Neelachal Ispat Nigam Limited (NINL), SteelOrbis has learned from industry circles on Tuesday, March 23.

The Indian government has already floated a notice seeking expressions of interest (EOIs) from prospective bidders for NINL’s 1.1 million mt per year integrated steel mill located in the eastern state of Odisha. The deadline for submission of EOIs has been set for March 29.

The existing equity of NINL is all held by four central government undertakings - MMTC Limited, NMDC Limited, Bharat Heavy Electricals Limited (BHEL) and MECON - along with two Odisha government-run firms - IPICOL and Odisha Mining Corporation Limited.

MMTC is the principal shareholder in NINL having 49.78 percent of the total equity.

“We are serious about the asset. ESL Steel Limited is a long product company and NINL is a logical extension,” ESL Steel Limited CEO, Pankaj Malhan said. “Also, we would like to bet big on long products considering the large government expenditure planned for infrastructure projects,” he added.

AMNS CEO Dilip Oommen said,” We are always looking for growth opportunities and therefore are evaluating participation in the disinvestment process of NINL.”

It may be noted that AMNS operates an integrated steel mill in the western state of Gujarat, but the plant produces only flat products with the company drawing up plans for expanding its product portfolio to include long products, and the acquisition of NINL’s assets would offer inorganic growth to diversify its product portfolio.

Tata Steel officials said that the company is also looking to increase long product production capacity and will participate in bidding for a controlling stake in NINL.


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