Tata Steel’s Arm to buy Neelachal Ispat Nigam

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.