Tata Steel after completing acquisition will strengthen the operation of Neelachal Ispat Nigam (NINL) to rated capacity of 1.1 million tpa within the next one year.
However, the ramping up of the operations of NINL will be subject to obtaining statutory clearances.
Tata Steel arm, Tata Steel Long Products (TSLP), in January 2022 won the bid to acquire a 93.71 percent stake in NINL at an enterprise value of Rs 12,100 crore.
The acquisition is important considering the proximity of the NINL plant to Kalinganagar plant and its potential to become the hub for long products business in the near future.
Moreover, Tata Steel has continued to accelerate its capital allocation for the six million tpa pellet plant and 2.2 million tpa cold rolling mill complex as part of the five million tpa expansion at Kalinganagar.
The six million tpa pellet plant will be commissioned in Q3/FY23, followed by the cold roll mill complex and five million tpa expansion.