India: Tata Steel interested in RINL, NINL acquisition

Integrated steel major Tata Steel is interested in throwing its hat into the ring for the acquisition of State-owned Rashtriya Ispat Nigam Limited (RINL), as per a media report. The Cabinet Committee on Economic Affairs (CCEA) on 27 Jan'21, had given its 'in-principle' approval for 100% disinvestment of government stake in RINL, along with RINL's stake in its subsidiaries/joint ventures.

Reasons for Tata Steel's interest in RINL

• Tata Steel is looking for inorganic growth in its long products business.
  
  
• RINL is India's first shore-based plant with access to Gangavaram Port, which is a key arrival point for coking coal.
  
  
• If acquired, RINL will give Tata Steel more access to the South East Asian markets, where it already has a presence.
  
  
• RINL has good road and rail connectivity which may facilitate transport to domestic markets.When contacted, a reliable source said, if acquired, RINL will benefit too and can undergo a swift turnaround because it would have access to Tata Steel's iron ore since it does not have a captive block of its own.
  
  

EoI submitted for NINL

Meanwhile, Tata Steel has also submitted the expression of interest (EoI) for Neelachal Ispat Nigam Ltd (NINL), which the government wants to sell off fully. The EoI has been submitted under Tata Steel Long Products, which manufactures high alloy steel, primarily for the auto and wire ropes industry and has a capacity of 1 million tonnes per annum.