SAIL pledges to invest Rs 10,000 cr in NINL
State-run steel giant SAIL on saturday said merger of Nilachal Ispat Nigam with itself would definitely create a greater synergy and pledged to invest Rs 10,000 crore to ramp up its production capacity to 3 million tonne. “We are seriously interested to merge Nilachal Ispat with us as it would create a greater synergy. We have decided to invest Rs 10,000 crore to ramp up its production capacity to 3 million tonnes per year,” Steel Authority of India Limited (SAIL) Chairman Sushil Kumar Roongta told PTI.
The proposed merger received a setback after the Orissa government last September conveyed its disagreement on Nilachal Ispat Nigam’s (NINL) valuation by IDBI Capital. IDBI Capital, appointed by the state government, pegged the share value of NINL at Rs 27 which neither the state nor the steelmaker’s key stakeholders agree.
They argued that IDBI Captial did not taken into account the iron ore mines granted in favour of NINL while evaluating prices.
