Govt approves Tata Steel’s bid to acquire 93.71% equity in Neelachal Ispat
Govt approves Tata Steel’s bid to acquire 93.71% equity in Neelachal Ispat
The Central government does not hold any stake in NINL directly, which has accumulated losses and a negative net worth. NINL is a joint venture of 4 CPSEs, — MMTC, NMDC, BHEL, MECON — and 2 Odisha government-owned companies OMC and IPICOL.
The government on Monday approved the highest bid of Tata Steel Long Products Limited for acquiring 93.71 per cent equity in Neelachal Ispat Nigam Ltd (NINL), held by joint venture partners of four CPSEs and two Odisha government companies, at an enterprise value of Rs 12,100 crore. NINL has an integrated steel plant with a capacity of 1.1 MT, at Kalinganagar, Odisha.
The Central government does not hold any stake in NINL directly, which has accumulated losses and a negative net worth. NINL is a joint venture of 4 CPSEs, — MMTC, NMDC, BHEL, MECON — and 2 Odisha government-owned companies OMC and IPICOL.
Explained |Economic Survey in 5 points: Nurturing a post-Covid recovery and the risk factors
An alternative mechanism, comprising Transport minister Nitin Gadkari, Finance Minister Nirmala Sitharaman, and Commerce & Industry Minister Piyush Goyal, has approved the bid, Union finance ministry said in a statement. The company has been running in huge losses and its plant is closed since April 2020.
“The company has huge debt and liabilities exceeding Rs. 6,600 crores as on 31.3.2021, including overdues of promoters (Rs 4,116 crore), banks (Rs 1,741 crore), other creditors and employees. The company has negative net worth of Rs 3,487 crore and accumulated losses of Rs 4,228 crore as of 31.3.2021,” the government said.
Tata Steel Long Products was chosen as the highest bidder, defeating JSW Steel and a consortium of Jindal Steel & Power Limited and Nalwa Steel and Power Ltd. The reserve price for the bid was approved at at Rs 5616.97 crore. The money raise through stake sale will go towards funding company liabilities and to the selling shareholders. This is second large privatisation deal post sale of Air India to Tata Group.
“This is the first instance of privatisation of a public sector steel manufacturing enterprise in India. The success of the transaction is a win-win situation for all. The biggest advantage of privatisation will be to the local economy of the region as the strategic buyer will be able to revive a closed plant, bring in modern technology, best managerial practices and make infusion of fresh capital, which will help in augmenting the capacity of the plant,” the government said.
On the request of the Boards of selling shareholder PSEs and on concurrence by Odisha government, the Cabinet Committee on Economic Affairs had given ‘in-principle’ approval to strategic disinvestment of NINL in January 2020, the government said. The Department of Disinvestment & Public Asset Management said the transaction was made through an open-market, competitive bidding process.
The government will issue Letter of Intent to Tata Steel Long Products, and thereafter sign a share purchase agreement. At this stage, 10 per cent of the bid amount shall be paid by the successful bidder into the escrow account. The government had provided access to virtual data room of the company to the bidders for conducting due diligence.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.
Final Journey of Judith Lewis (91 years) | LIVE From Kallianpur
Obituary : Miss Judith Lewis (91), Milagres A Ward, Kallianpur
Rozaricho Gaanch April, 2024 - Ester issue
Final Journey Of Theresa D’Souza (79 years) | LIVE From Kemmannu | Udupi |
Invest Smart and Earn Big!
Creating a World of Peaceful Stay!
For the Future Perfect Life that you Deserve! Contact : Rohan Corporation, Mangalore.
Final Journey Of Joe Victor Lewis (46 years) | LIVE From Kemmannu | Organ Donor | Udupi |
Milagres Cathedral, Kallianpur, Udupi - Parish Bulletin - Feb 2024 Issue
Way Of Cross on Good Friday 2024 | Live From | St. Theresa’s Church, Kemmannu, Udupi | LIVE
Good Friday 2024 | St. Theresa’s Church, Kemmannu | LIVE | Udupi
2 BHK Flat for sale on the 6th floor of Eden Heritage, Santhekatte, Kallianpur, Udupi
Maundy Thursday 2024 | LIVE From St. Theresa’s Church, Kemmannu | Udupi |
Kemmennu for sale 1 BHK 628 sqft, Air Conditioned flat
Symphony98 Releases Soul-Stirring Rendition of Lenten Hymn "Khursa Thain"
Palm Sunday 2024 at St. Theresa’s Church, Kemmannu | LIVE
Final Journey of Patrick Oliveira (83 years) || LIVE From Kemmannu
Carmel School Science Exhibition Day || Kmmannu Channel
Final Journey of Prakash Crasta | LIVE From Kemmannu || Kemmannu Channel
ಪ್ರಗತಿ ಮಹಿಳಾ ಮಹಾ ಸಂಘ | ಸ್ತ್ರೀಯಾಂಚ್ಯಾ ದಿಸಾಚೊ ಸಂಭ್ರಮ್ 2024 || ಸಾಸ್ತಾನ್ ಘಟಕ್
Valentine’s Day Special❤️||Multi-lingual Covers || Symphony98 From Kemmannu
Rozaricho Gaanch December 2023 issue, Mount Rosary Church Santhekatte Kallianpur, Udupi
An Ernest Appeal From Milagres Cathedral, Kallianpur, Diocese of Udupi
Diocese of Udupi - Uzvd Decennial Special Issue
Final Journey Of Canute Pinto (52 years) | LIVE From Mount Rosary Church | Kallianpura | Udupi
Earth Angels Anniversary | Comedy Show 2024 | Live From St. Theresa’s Church | Kemmannu | Udupi
Kemmannu Cricket Match 2024 | LIVE from Kemmannu
Naturya - Taste of Namma Udupi - Order NOW
New Management takes over Bannur Mutton, Santhekatte, Kallianpur. Visit us and feel the difference.
Focus Studio, Near Hotel Kidiyoor, Udupi
Earth Angels - Kemmannu Since 2023
Kemmannu Channel - Ktv Live Stream - To Book - Contact Here
Click here for Kemmannu Knn Facebook Link