IN ITS second acquisition of a PSU in recent weeks, Tata group firm beat the likes of Jindal Steel and JSW Steel to snap loss-making Odisha-based Neelachal Ispat Nigam Ltd (NINL) for Rs 12,100 crore. In a statement, the Finance Ministry said Tata Steel Long Products Ltd’s (TSLP) bid of more than double the reserve or base price, for NINL, whose 1.1 million tonnes a year capacity steel plant at Kalinganagar in Odisha was shut in March 2020 due to continued losses, has been accepted.

Just last week, a Tata Group firm completed the takeover of Air India - the first State-owned company to be privatised in nearly two decades. Tata Group had bid Rs 18,000 crore for Air India, higher than the reserve price of Rs 12,906 crore.

The NINL deal, which will be the second successful privatisation by the Modi Government, will take at least a couple of months to conclude.

The Finance Ministry said TSLP outbid a consortium of Jindal Steel & Power Limited and Nalwa Steel and Power Ltd; and JSW Steel Ltd, in financial bid put for buying NINL, which is a joint venture of 4 CPSEs -- MMTC, NMDC, BHEL, MECON and 2 Odisha Government PSUs -- OMC and IPICOL.

The bid by TSLP was double the reserve price of Rs 5,616.97 crore set by the Government based on the valuation of transaction adviser and asset valuer.