JSPL to bid 'aggressively' for debt-laden steel maker NINL next week: MD

Jindal Steel and Power Ltd (JSPL) will "aggressively" bid for Odisha-based steel maker NINL, its Managing Director V R Sharma said on Wednesday.

Speaking to PTI, Sharma said,"We are extremely serious about it (NINL) and will bid aggressively for the asset. This asset is more valuable to us in terms of our operations there in Odisha."

December 23 is the scheduled date for bidding for Neelachal Ispat Nigam Ltd (NINL), he said.

Asked about JSPL's plans with respect to NINL post acquisition of the unit, the MD replied his company would be investing in the asset to expand its capacity and product mix.

Without disclosing any figure, Sharma said, "It (NINL) would be having a debt of about Rs 2,500 crore-Rs 3,000 crore. We will turn around (the company) and also make investments in it."

There are plans to set up a wire rod mill, a rebar mill, coke oven plant and a container manufacturing unit, he said adding the products would be sold in domestic as well as export markets.

Sharma further said NINL is strategically located and its acquisition would provide additional advantages to JSPL. The NINL plant in Jajpur is about 150 kilometers from JSPL's integrated steel unit in Angul.

"NINL is well connected through rail and road. It is also located near (Dhamra) port. We make and sell semi products. (After acquiring NINL) we will be able to manufacture finished products as well," he said.

NINL is a joint venture, in which four central PSUs -- MMTC, National Mineral Development Corporation (NMDC), Bharat Heavy Electricals Ltd (BHEL) and MECON -- and two Odisha government companies IPICOL and Odisha Mining Corporation are shareholders.

In January 2020, the Centre gave an in-principle approval for strategic sale of NINL by allowing the six PSU shareholders to sell their stake in the steel company.

Operations at 1.1 million tonne integrated NINL plant in Jajpur are suspended at the moment.

NINL has its own captive power plant to meet the internal power requirement and air separation unit for producing oxygen, nitrogen and argon.

Besides, the company has its own captive iron ore mines which are under development, and a land area of 2,500 acre.