The Centre on Monday invited expressions of interest (EoIs) for strategic disinvestment of 100% stake in Neelachal Ispat Nigam (NINL) held jointly by four central PSUs and two Odisha government PSUs.
In the two-stage process, the last date for submission of EoIs for NINL is March 29. The shortlisted bidders will be asked to put financial bids in the second stage. The transaction is seen materialising in the next financial year. According to bidding terms, interested bidder/s for NINL must have a net worth of Rs 2,000 crore.
NINL posted a loss of Rs 402 crore in FY19 and Rs 827 crore in the first nine months of FY20.
Equity shareholding of NINL consists of Minerals & Metals Trading Corporation (49.78%), National Mineral Development Corporation (10.10%), MECON (0.68%), Bharat Heavy Electricals (0.68%), Industrial Promotion and Investment Corporation of Odisha (12%) and Odisha Mining Corporation (20.47%).
The land bank may be of interest to new investors since it may provide a ready expansion opportunity. Total land area leased to NINL at the existing facility is around 2,500 acre. The plant facilities are located at a strategic location at Kalinganagar Complex, Odisha, with proximity to iron ore and other raw materials.
It also has been allotted captive iron ore mine in Sundargarh and Keonjhar districts.
The Centre is hopeful that the successful strategic buyer may bring in new management/technology/investment for the growth of the company and may use innovative methods for development of the business operations of the company, which might generate more employment opportunities.