JSPL Enthusiastic Over Buyout of NINL Assets

SEATTLE (Scrap Monster): Jindal Steel & Power Limited (JSPL) announced that it is seriously interested in purchasing the assets of state-run Neelachal Ispat Nigam Limited (NINL)-  the Odisha-based integrated steel producer. The government is expected to open the bid process for the steel major on 23^rd December, as announced earlier.

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According to VR Sharma, Managing Director, JSPL, the company is confident of turning around the asset, faster than other bidders. It is serious about buying out the company, for which it projects a fair value of around INR 5,000 crore, including all of its assets, land and mines.

It must be noted that several metal industry firms had submitted expressions of interest (EOIs) in acquiring the assets of NINL. The shortlisted companies include steel majors including ArcelorMittal, JSW Steel, Hyderabad-based Megha Engineering & Infrastructure and Tata Steel. Tata Steel had publicly announced its interest, in line with its plans to expand its long product portfolio.

If JSPL emerges as the winning bidder, it plans to set up a wire-drawing facility, a wire-rod facility and a container facility at the NINL’s Kalinganagar Industrial Complex steel facility in Jajpur, Odisha. In addition, it also plans to set up a commercial coke oven plant, so as to make best use of the recently acquired coking coal mines in Australia.