Govt to invite EoIs for divestment of RINL and subsidiaries by January end

13 Dec 2022 , 10:40 AM

The government intends to invite expressions of interest (EoI) for the divestment of Rashtriya Ispat Nigam Limited (RINL) and its subsidiary by the end of January 2023.

According to people familiar with the situation, Tata Steel, JSW Steel, and Adani Group expressed “strong interest” in the entity during pre-bid consultations held in early December.

“RINL received very positive feedback during the roadshows. Seven companies have expressed strong interest, including Tata Steel, Adani Group, and JSW Steel, ” said one of the individuals on the condition of anonymity.

The Centre held a roadshow for the strategic sale last week, followed by another round of consultation on December 2, attended by all major steel firms. All the companies involved maintained silence on the news.

In January 2021, the Cabinet Committee on Economic Affairs gave in-principle approval for the sale of the government’s entire stake in RINL.

The approximately 22,000 acres of land owned by RINL is a major draw for potential bidders, as is its proximity to the Adani Group-owned Gangavaram Port.

The company’s valuation is expected to be completed by the end of December.

The Centre also met with the company’s employee union, which is opposed to the proposed sale, and assured them that their interests would be protected while negotiating the terms of the strategic sale.

With an annual capacity of approximately 7.5 million tonnes, the company ranks among the top six steel producers in the country. Many players, including ArcelorMittal Nippon Steel, rely on it for structural steel.

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