Odisha’s Neelachal Ispat Steel Plant now open to global EOI

In compliance with the Union directive on disinvestment of the 1.1 MTPA plant, the DIPAM has issued a Global Invitation for Expression of Interest (EOI)

March 2, 2021

The Steel Plant is a joint venture between National and State PSUs including BHEL and the Odisha Mining Corporation.

Pig Iron, BF Coke, crude tar, granulated slag, ammonium sulphate and virgin steel billets are the chief products manufactured.

The 2500 acre long development has facilities including a Coke Battery, Steel Melting Shop, and Captive Power plant.

Permission has been granted by the Ministry of Mines to undertake commercial mining up to 0.5 million tonnes.

The Neelachal Ispat Nigam Ltd (NINL) Steel Plant in Odisha, an ISO 9001:2008 & ISO 14001:2004 certified entity with an output capacity of 1.1 million tonnes per year (MTPA), is putting forth a Global Invitation for Expression of Interest (EOI). Dated January 25, 2021, the Department of Investment and Public Asset Management (DIPAM)  had issued the Preliminary Information Memorandum in compliance with the Union Cabinet decision to pursue the disinvestment of the aforementioned project. 

Located in the Jajpur district of Odisha, the Steel Plant has been developed as a joint venture between National and State PSUs including Industrial Promotion Investment Corporation Ltd, BHEL, National Mineral Development Corporation Ltd and the Odisha Mining Corporation. The Plant chiefly produces Virgin Steel Billet, Pig Iron, and BF Coke, as well as byproducts including granulated slag, crude tar, and ammonium sulphate. 

The development consists of 2500 acres of unencumbered land and has facilities including:

  • A Coke Battery of 0.88 MTA endowed with a dry quenching facility. 
  • A Sinter Plant and Blast Furnace with 1.71 MTA and 1.1 MTA capacity respectively. 
  • A Captive Power capacity of 62.5 MW.
  • A Steel Melting Shop with 0.9 MTA, equipped with a Ladle Heating Furnace (LHF), Continuous Casting Plant (CCP), Oxygen Plant and Lime & Dolomite Calcination Plant.
  • An air separation unit for the production of oxygen, nitrogen, and argon. 

The Steel Plant also enjoys geographical proximities of (i) 3 Km from Paradeep Daitari Expressway, (ii) 15 Km from Jajpur Railway Station, (iii) 30 Km from existing Iron Ore Mines at Daitari of Odisha Mining Corporation, (iv) 45 Km from National Highway, (v) 120 Km from Paradeep Sea Port. The Plant has also recently received approval from Ministry of Mines, Govt. of India for mining of 0.5 million tonnes on a commercial basis to meet operational expenses till disinvestment.

To access the PIM/EOI document, kindly click any of the following links: DIPAM (www.dipam.gov.in), Ministry of Commerce and Industry (www.commerce.gov.in), NINL (www.ninl.in), MMTC (www.mmtclimited.com) and Transaction Adviser, M/s. SBICAPS (www.sbicaps.com). The last date for the submission of EOI is March 29, 2021. 

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