India’s Jindal Steel and Power Limited (JSPL) is looking to participate in the privatization process for government-run steel companies like Rashtriya Ispat Nigam Limited (RINL) and iron ore miner’s greenfield Nagarnar Steel mill project, company sources said on Thursday, February 24.
The sources said that, while no definitive move has been made so far, JSPL is interested in acquiring the government’s steelmaking assets and will take the necessary steps once bidding is announced.
It may be noted that JSPL had also participated in the privatization of government-run steel producer Neelachal Ispat Nigam Limited’s (NINL) 1.1 million mt per year steel mill in the eastern state of Odisha, but was pipped by Tata Steel which acquired it through a winning bid.
JSPL sources said that the company is keen to ramp up its long steel product portfolio and RINL as an exclusive long product producer with a 7.3 million mt per year capacity will be a good fit for acquisition. At the same time, with RINL being a port-based mill with surplus land, adding flat product plants to bolster its product portfolio will not be an issue.
NMDC Nagarnar Steel Plant Limited which is poised to start commercial production of its 3 million mt greenfield steel mill in Chhattisgarh in July this year is also located in the prime iron ore belt of the state and will be an attractive acquisition, the sources said.
Meanwhile, JSPL has submitted an expression of interest (EOI) to acquire the ailing Indian Steel Corporation through the bankruptcy resolution process, the sources added.