The steel ministry has approved the merger of companies like Neelachal Ispat Nigam (NINL), Manganese Ore India (MOIL) and Bharat Refractories (BRL) with SAIL.
The merged steel behemoth is estimated to tot up a turnover of nearly Rs 43,000 crore from present level of Rs 32,800 crore. Its annual production of crude steel is expected to reach 17m tonnes (MT) from 13 MT at present. The merger of Rashtriya Ispat Nigam (RINL), however, has been put on hold at present.
SAIL posted net profit of Rs 5,717 crore in 04-05 and NINL recorded a profit of over Rs 200 crore in the same time period. Earlier, RINL and Tata Steel were also keen to pick up equity in NINL. NINL, which produces 1.2 MT pig-iron annually, has been promoted jointly by MMTC and and Orissa government.
NINL also has investment plans of Rs 1400 crore to expand capacity over the next five years, and to construct a new smelting shop.
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| Posted : 6/21/2006 |
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