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The government has approved the sale of Neelachal Ispat Nigam Limited (NINL) to Tata Steel Long Products Limited (TSLP) for Rs 12,100 crore. Moreover, the Committee of Economic Affairs has approved the highest bid of Tata Steel Long Products for 97.71% of shares of the joint venture (JV) of four Central Public Sector Enterprises (CPSEs) and two Odisha government Public Sector Enterprises (PSEs) at the bid enterprise value of Rs 12,100 crore. NINL is a JV of four CPSEs, including Metals and Minerals Trading Corporation of India Limited (MMTC), National Mineral Development Corporation Limited (NMDC), Bharat Heavy Electricals Limited (BHEL), Metallurgical & Engineering Consultants India Limited (MECON) and two Odisha government PSUs, including Odisha Mining Corporation Limited (OMC) and Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL). NINL has an integrated steel plant having a capacity of 1.1 million tonnes (mt) at Kalinganagar in Odisha. It is under huge debt and liabilities of over Rs 6,600 crore and overdue of the promoters of Rs 4,116 crore, banks of Rs 1,71 crore and other creditors and employees. According to a statement, the company has a negative net worth of Rs 3,487 crore, with accumulated losses of Rs 4,228 crore. The transaction was made through a combination of open-market and competitive bidding processes. The transaction was executed via a multi-layered decision mechanism-based procedure involving Inter-Ministerial Group (IMG), Core Group of Secretaries on Disinvestment (CGD) and the empowered Alternative Mechanism, Odisha government with their companies like Odisha Mining Corporation Limited (OMC) and Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) having a stake of 32.47%, present during decision making. The Expressions of Interest (EoI) were also invited, which received many responses. The Share Purchase Agreement (SPA) was finalised and shared with the interested bidders, with the REF issued for inviting financial bids. The financial bids were opened, which concluded the following bidders, Consortium of Jindal Steel and Power Limited and Nalwa Steel and Power Limited, JSW Steel Limited and Tata Steel Long Products Limited (TSLP). TSLP emerged as the highest bidder (H-1) and was issued the Letter of Intent (LoI). About 10% of the bidding amount should be paid by the successful bidder. It is the first privatisation of the steel manufacturing enterprise in India. It will boost the local economy as the local buyers can revive near the plant, bring in modern technology, best managerial practices, and infuse new capital. Image Source Also read: Govt urges steel makers to provide relief to MSME sector