The government handed over one more big company to Ratan Tata, find out which company was running at a loss
Privatization News: Despite opposition to privatization, the government has privatized one more large company. On this day, the government company has been bought by veteran businessman Ratan Tata. In fact the company was running at a loss and the plant has been closed since March 30, 2020.
Odisha-based Nilachal Ispat Nigam Limited (NINL) is being handed over to a Tata Group firm, with the entire process likely to be completed by mid-July. Tata Steel's unit, Tata Steel Long Products (TSLP), acquired NINL for Rs. The bid to acquire 93.71 per cent stake in the enterprise worth Rs 12,100 crore was won, an official said. The company has surpassed the consortium of Jindal Steel and Power Limited, Nalva Steel and Power Limited and JSW Steel Limited. Ratan Tata's firm will soon take care of it.
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The process is in the final stages
"The transaction is in the final stages and should be transferred by the middle of next month," an official told PTI-Bhasha news agency. Since the government has no stake in the company, the sale amount is not credited to the government treasury. It will go to four CPSEs and two PSUs of the Odisha government.
Debt-ridden company
It may be mentioned that Nilachal Ispat Nigam Limited has an integrated steel plant at Kalinganagar, Odisha with a capacity of 1.1 MT. The state-owned company is also running at a huge loss and the plant has been closed since March 30, 2020. The company has Rs. It has over Rs 6,600 crore in debt and liabilities, including Rs. 4,116 crore, banks' Rs. 1,741 crore, including huge debts of other creditors and employees.
09-May-2025