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Even as it was transferring ₹19,350 crore for acquiring the stressed asset of Bhushan Power and Steel, the Sajjan Jindal-led JSW Steel is eyeing its next big catch by submitting Expression of Interest (EoI) for MMTC-promoted Neelachal Ispat Nigam (NINL).
NINL has a long product manufacturing facility of 1.1 million tonne per annum along with pig iron and billets production at Kaliganagar Industrial Complex in Duburi, Odisha. Apart from JSW Steel, sources said other steel majors Tata Steel, AM/NS India and Vedanta-owned ESL Steel are contesting to acquire NINL.
NINL stake
Last January, the Cabinet had given in principal approval for strategic disinvestment of NINL. While MMTC owns 49.78 per cent in NINL, other public sector entities such as NMDC owns 10.10 per cent, MECON and BHEL has 0.68 per cent each. Odisha government-owned OMC and IPICOL holds 20.47 per cent and 12 per cent stake.
In January, the government had invited preliminary bids for strategic sale. The last date for submission of EoI by interested bidders is on Monday. SBI Capital Markets is the transaction advisor of the sale.Besides NINL, the Central government has taken decision for strategic disinvestment of Rastriya Ispat Nigam, NMDC Integrated Steel Plant, Nagarnar; Ferro Scrap Nigam; Alloy Steel Plant, Durgapur, Visvesvaraya Iron and Steel Plant, Bhadravathi; and Salem Steel Plant, Salem.
Having found a foothold in the eastern market with the acquisition of BPSL, JSW Steel is now eyeing smaller companies for downstream steel production. Currently, JSW has a small presence in Chhattisgarh through Monnet Ispat & Energy, jointly owned by AION Investments.
Incidentally, Sajjan Jindal, Chairman, JSW Group in a recent statement said the BPSL acquisition is an important milestone as it is the largest ever in the history of JSW Steel and establishes the company’s presence in the eastern market.
“The contribution of BPSL employees will be key in bolstering the Group’s ambitious growth plans of achieving 45 mtpa capacity well ahead of 2030 timeline,” he added.
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