New Delhi: Tata Steel on Monday said it will work "expeditiously" to restart NINL and simultaneously draw a plan to expand its capacity to produce 4.5 MTPA long products complex in the next few years.
In a statement, issued after completing the acquisition of the Odisha-based one million tonne per annum (MTPA) steel mill, Tata Steel said it also has to increase NINL's capacity to 10 MTPA by 2030.
The acquisition has been made by step-down company Tata Steel Long Products Ltd (TSLP) for a considerable amount of Rs 12,000 crore.
"The plan is to not only restart 1 MTPA steel plant expeditiously but to also work simultaneously to expand the capacity by building a 4.5 million tonnes per annum state-of-the-art long products complex in the next few years, and further expand it to 10 MTPA by 2030," it said.
In the statement, Tata Steel said that TSLP has completed the acquisition of 93.71 per cent in NINL, a joint venture of four central public sector enterprises — MMTC, NMDC, BHEL, MECON — and two Odisha government public sector units — OMC and IPICOL.
The acquisition has been completed as per the terms and conditions of the share sale and purchase agreement entered on March 10, 2022 and in accordance with the process carried out by the Department of Investment & Public Asset Management (DIPAM).
T V Narendran, CEO & Managing Director of Tata Steel and TSLP chairman, said: "The acquisition is a historic achievement and a significant milestone towards building a dedicated long products facility for the Tata Steel Group. The completion of the transaction is a testimony to government of India's focus on its disinvestment programme. The acquisition also reflects our commitment to Odisha and the communities around its operations. We are delighted to welcome NINL and its employees to our family."
According to the statement, the long product segment in India is poised to witness significant growth as India builds its infrastructure through government's Atmanirbhar Bharat programme along with the pick up in the retail housing segment in semi-urban India.
Tata Steel will leverage its capability in the long products business using its strong brand equity, particularly in the retail construction segment, and its extensive, pan-India retail and distribution network to drive scale in long products.
Tata Steel had earlier announced its ambition to increase its capacity to 40 million tonnes per annum by 2030 in India, and the "NINL acquisition strengthens this growth plan over the next decade while providing the enablers to even go beyond the 40 million tonnes target", the company said.