Tata Steel Long Products’ bid to buy the steel producer Neelachal Ispat Nigam has received approval from the center. The bid to buy 93.71% of shares of the joint venture of CPSEs and two PSEs of the Odisha government at the bid enterprise value of Rs 12,100 crore.
This is the first privatisation of a public sector steel manufacturing enterprise in the country and its success is a win-win situation for all. According to the Finance Ministry, the biggest advantage of this privatisation will be to the local economy of the region. It will revive a nearby plant, bring in modern technology, best managerial practices, and make an infusion of fresh capital, which will be helpful in the augmentation of the capacity of the plant.