Tata Steel Long Products Signed SPA for Buyout of NINL Steel Assets

SEATTLE (Scrap Monster): The government of India has signed a share purchase agreement (SPA) with Tata Steel Long Products (TSLP) towards sale of debt-ridden Neelachal Ispat Nigam Limited (NINL) for a sum of INR 12,100 crore. Accordingly, the NINL 1.1 MT Kalinganagar, Odisha integrated steel plant will be handed over to the Tata Group Company.

In a statement released yesterday, Tuhin Kanta Pandey, Secretary- Department of Investment and Public Asset Management (DIPAM) said that SPA has been signed by JV partners of NINL with Tata Steel Long Products and that the disinvestment transaction is fast approaching the closing stage.

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It must be noted that TSLP was approved by the government as the strategic buyer, after it placed the highest bid of INR 12, 100 crores in January this year. Following this, the government had issued a Letter of Intent (LOI) to TSLP, inviting them to sign the SPA. Others who participated in the bidding process include JSW Steel Limited and a consortium of Jindal Steel & Power Limited and Nalwa Steel and Power Ltd.

NINL has been operating in huge losses since March 2020. As on March 2021, it has debt and liabilities in excess of INR 6,600 crores.