Tata Steel Reaffirmed Appetite to Acquire RINL Assets

SEATTLE (Scrap Monster): Indian steelmaker Tata Steel announced interest in acquisition of assets of state-owned Rashtriya Ispat Nigam Limited (RINL), which comprises a 7.3 million tonnes steel plant in Visakhapatnam, Andhra Pradesh. The Cabinet Committee on Economic Affairs (CCEA) had given approval for 100% disinvestment of government’s stake in the company in January this year.

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Commenting on the matter, TV Narendran, Managing Director and CEO, Tata Steel said that the company is interested in acquiring the assets as it will add to the inorganic growth opportunities for long products. The proximity to Gangavaram Port offers immense logistics benefits. The location of the RINL plant on the eastern coast of India will give the company easy access to South East Asian markets, in addition to domestic demand for special steel, he added.

The steel maker has already submitted Expression of Interest (EoI) towards acquisition of Odisha-based Neelachal Ispat Nigam Limited (NINL) - a joint venture steel manufacturer with central public sector undertakings and state government entities as its shareholders. It must be noted that the strategic sale of NINL was approved by the Centre in January last year.