Tata Steel intends to reopen NINL steel plant in the next 3 months

6 Jul 2022 , 03:17 PM

According to Tata Steel's CEO and MD T V Narendran, the company plans to restart the 1 million tonnes (MT) NINL steel plant within the next three months.

Through its subsidiary business Tata Steel Long Products (TSLP), Tata Steel completed the acquisition of NINL on Monday for a price of Rs 12,000 crore. The facility in Odisha has been shut down for over two years.

When asked about the company's future plan for the recently purchased steel factory, Narendran told PTI that Tata Steel's next step would be to assume ownership of NINL and work hard with the company's staff and other stakeholders to realize the asset's full potential.

"We are prepared to collaborate with current staff members to reopen the factory, which has been idle for over two years. The senior official stated, "We plan to begin production within the next three months and scale up to the rated capacity during the next twelve months.

The designs for the NINL capacity extension to 5 million tonnes will also be finalized during this period, and Tata Steel will get the necessary internal and external permissions. On January 31, Tata Steel announced that it had won the bid to purchase 93.71 percent of the stake in the steel manufacturer NINL in Odisha.

He said, "It took some time since there were many difficulties to be settled between the multiple shareholders of NINL and us," when questioned about the cause of the purchase process's delay. In addition to a 1 MT steel mill, NINL features an air separation facility that produces oxygen, nitrogen, and argon as well as a captive power plant to fulfill internal power needs.

Additionally, it has under construction captive iron ore mines of its own. Tata Steel needed to acquire NINL in order to construct a certain long-products complex.