Govt tweaks rules for potential bidders of NINL

The interested bidders can apply to seek approval for the change to the transaction adviser within 60 days, DIPAM said

The government has tweaked rules to allow sole bidders of Neelachal Ispat Nigam Ltd (NINL) to form a consortium, and existing consortium to induct or exclude new members.

The interested bidders can apply to seek approval for the change to the transaction adviser within 60 days, the Department of Investment and Public Asset Management (DIPAM) said. The divestment is based on enterprise value of the company, and the proceeds would be used to repay the company's lenders, it said.

The company had submitted a restructuring plan on Dec 17, 2020, to the consortium of banks, and its requirement of Rs 350 crores corpus for starting up plant and mines operations. The proposal is under consideration by the company's lenders, DIPAM said in response to queries of potential bidders. As per the strategic disinvestment process, the new buyer will purchase shares and infuse funds into NINL that will be used to repay existing debt of the company. Debt repayment will be detailed in the Request For Proposal stage.

The government seeks to divest 93.7 per cent stake in the company held by four central public sector enterprises and two Odisha government-owned companies. Interested bidders can submit their expression of interest by March 29. NINL was incorporated in 1982 to set-up an integrated steel plant to undertake manufacturing and sale of steel products. NINL has a 1.1 million tonne per annum steel manufacturing unit which produces pig iron and billets.