JSPL to make “aggressive” offer for indebted steelmaker NINL next week: MD
Jindal Steel and Power Ltd (JSPL) will make an “aggressive” bid for the Odisha-based steelmaker NINL, managing director VR Sharma said on Wednesday.
Speaking to PTI, Sharma said, “We are extremely serious about this (NINL) and will be making an aggressive bid for the asset. This asset is more valuable to us in terms of our operations there in Odisha. “
December 23 is the scheduled date for the tender for Neelachal Ispat Nigam Ltd (NINL), he said.
Asked about JSPL’s plans for NINL after acquiring the unit, the chief executive replied that his company would invest in the asset to expand its capacity and product line.
Without disclosing any figures, Sharma said, “She (NINL) is said to be in debt of around Rs 2,500 crore-Rs 3,000 crore. We are going to turn (the company) around and invest in it as well.”
There are plans to set up a wire rod factory, a rebar factory, a coke oven factory and a container manufacturing unit, he said, adding that the products would be sold on the national and export markets.
Sharma added that NINL is strategically located and its acquisition would provide additional benefits to JSPL. The NINL plant in Jajpur is approximately 150 kilometers from JSPL’s integrated steel unit in Angul.
“NINL is well served by rail and road. It is also located near the port (of Dhamra). We manufacture and sell semi-finished products. (After the acquisition of NINL), we will also be able to manufacture finished products, ”he said.
NINL is a joint venture, in which four central PSUs – MMTC, National Mineral Development Corporation (NMDC), Bharat Heavy Electricals Ltd (BHEL) and MECON – and two government companies of Odisha IPICOL and Odisha Mining Corporation are shareholders.
In January 2020, the Center gave approval in principle to the strategic sale of NINL by authorizing the six shareholders of PSU to sell their stake in the steel company.
Operations of the integrated 1.1 million tonne NINL plant in Jajpur are currently on hold.
NINL has its own captive power plant to meet internal energy needs and an air separation unit for the production of oxygen, nitrogen and argon.
In addition, the company has its own captive iron ore mines under development and an area of 2,500 acres.
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