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Tata Group To Buy This Company After Air India

Tata Steel had announced winning bid to buy 93.71 per cent stake in Odisha-based steel maker NINL for Rs 12,100 crore

Photo Credit : PTI

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After Air India, Tata Group is about to buy another state-owned company Neelachal Ispat Nigam Limited (NINL). This NINL will be acquired by Tata Steel, a Tata Group company.

Tata Steel CEO (CEO) and Managing Director (MD) TV Narendran said that the company will complete the acquisition of Neelachal Ispat Nigam Limited (NINL) by the end of June.

This acquisition of NINL is very important for Tata Steel with a view to create a large product complex. Narendran said, "The acquisition of NINL will be completed in the first quarter of the current financial year and we will accelerate this to fuel the expansion of our high value retail business." 

Significantly, on January 31, Tata Steel had announced winning bid to buy 93.71 per cent stake in Odisha-based steel maker NINL for Rs 12,100 crore.

Neelachal Ispat Nigam Limited has an Integrated Steel Plant at Kalinganagar, Odisha with a capacity of 1.1 MT. This government company is also running in huge losses and the plant is closed since March 30, 2020. The company has debts and liabilities of more than Rs 6,600 crore as on March 31, 2021, including Rs 4,116 crore to promoters, Rs 1,741 crore to banks, other creditors and huge dues of employees.

All the employees of NINL will continue in the company as before. An agreement has also been made for this. Under this agreement, the company cannot lay off employees for one year. It is worth noting that earlier Air India had acquired Air India by bidding Rs 18000 crore.


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tata group tata steel Neelachal Ispat Nigam