Indian steelmaker Tata Steel Limited needs to invest $126 million to restart its newly acquired Neelachal Ispat Nigam Limited (NINL) steel plant in the next three months, a company official said on Friday, Aug. 5.
Tata Steel through its subsidiary, Tata Steel Long Products Limited (TSLPL), completed the acquisition of NINL’s assets on July 4 this year through the government’s privatization process and half of the capital expenditure needed to restart the operation of the closed factory will be spent in the current fiscal year .
In the second phase, Tata Steel will make further investments to increase NINL capacity from 1.5 million mt per year to 5 million mt per year.
“We hope to start blast furnaces in three months and other facilities in the following months. The biggest problem is the coke oven which cannot be turned off without some precautions. Unfortunately, this was not done two years ago when NINL closed. It will take at least six months to revive all the facilities,” said Tata Steel TV CEO Narendran.