NEW DELHI: In a testament to the Central government’s successful privatisation policy, Neelachal Ispat Nigam Limited (NINL)—acquired by Tata Steel from the government for ₹12,100 crore in 2022—has achieved an annual EBITDA or operational profit of around ₹1,000 crore with a margin of 19%, in the March quarter. The company posted a free cash flow exceeding ₹1,000 crore this quarter.
“This demonstrates the turnaround of the company, which was closed at the time of acquisition three years ago,” said Koushik Chatterjee, Executive Director and Chief Financial Officer of Tata Steel, while announcing the company’s fourth-quarter results.
According to Tata Steel, which holds a 99.66% stake in NINL, the company operated at its rated capacity or the maximum output achievable under normal operating conditions, during the year.
For Q4 FY25, NINL posted revenue of ₹1,417 crore, up 25% year-on-year. In FY25, total revenue stood at ₹5,701 crore, marking a 3.5% increase over the previous year. The company’s EBITDA for Q4 was ₹313 crore, up significantly from ₹71 crore in the same quarter last year. For the full year, NINL’s EBITDA rose to ₹1,067 crore—20 times higher than the previous year.
Neelachal is a key cog in Tata Steel’s growth strategy, with the company envisioning NINL as a cornerstone of its long products expansion. It is being transformed into a state-of-the-art long products complex.
According to Tata Steel’s FY24 Annual Report, the company plans to expand NINL’s capacity to 9.5 million tonnes per annum (MTPA) over the next decade, as part of its broader goal to reach 40 MTPA. In the first phase, capacity will be scaled up from 1 MTPA to 5.5 MTPA.
According to the company, a capital expenditure (capex) of ₹340 crore was funded through internal accruals for sustenance activities in FY24. The company also achieved its designed production rate of 1 million tonnes within nine months of restarting operations.
The successful commissioning of the Coke Oven Battery—along with the Coke Dry Cooling Plant, Coal and Coke Handling System, and Effluent Treatment Facility—was completed within the same nine-month period.
The company claims this is the first instance in India where a closed coke oven battery was restarted using temporary repairs. Additionally, it achieved its highest-ever crude steel and pig iron production in a fiscal year, reaching 0.981 million tonnes in FY2023–24, in line with its rated capacity.
Located in close proximity to Tata Steel’s advanced Kalinganagar facility, NINL was a strategic acquisition for Tata Steel, offering synergies in infrastructure, resources, and management—supporting its ambition to build a dedicated, sustainable long products business.
Neelachal Ispat Nigam Ltd, was a joint venture of four public sector entities -- MMTC, NMDC, BHEL, MECON and 2 Odisha Govt PSUs, namely OMC and IPICOL. Before acquisition by Tatas, the company was running in huge losses and the plant was closed in March 2020. The company had huge debt and liabilities exceeding Rs 6,600 crores as on 31 March 2021, including huge overdues of promoters (Rs 4,116 crore), banks (Rs 1,741 crore), other creditors and employees. The company had negative net worth of Rs 3,487 crore and accumulated losses of Rs 4,228 crore as of 31 March 2021.