Tata Steel plans to acquire Rashtriya Ispat Nigam Limited (RINL), a Vishakhapatnam-based steel producing major.
In Visakhapatnam, Andhra Pradesh, RINL owns and runs a 7.3 million tonne (mt) plant.
The Cabinet Committee on Economic Affairs (CCEA), on January 27, provided its in-principal permission for 100% disinvestment of government stake in RINL. Along with RINL's stake in its joint enterprises by strategic disinvestment using privatisation.
RINL has access to Gangavaram Port, where raw materials like coking coal come, and the firm also has around 22,000 acres of land.
Tata Steel would have more access to the South East Asian markets because RINL is established on the eastern coast of India, apart from providing the domestic requirements of special steel by rail and road.
T V Narendran, the CEO, Tata Steel, informed that the steel-producing firm submitted an Expression of Interest (EoI) for the Neelachal Ispat Nigam Ltd (NINL) based in Odisha as well.
NINL is a joint venture firm with four central PSUs: Bharat Heavy Electricals Ltd (BHEL), MMTC, National Mineral Development Corporation (NMDC). IPICOL and Odisha Mining Corporation (OMC) are two Odisha Government shareholder firms.
The Centre allotted in principle permission for the necessary sale of NINL by allowing the six PSU shareholders to sell their stake in the steel company in January 2020.
Tata Steel Long Products produces high alloy steel, mainly for the wire rope and auto sector industry. It is one of the largest speciality steel plants in India in the long product sector.
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