RINL eyes Rs 480 cr from Vizag land sale
E-auction plots located in HB Colony, Maddilapalem, Autonagar, and Pedagantyada; Pre-bid meeting on Feb 28
Visakhapatnam: In bid to slash its debt burden, Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, hopes to raise a good amount from e-auction of 13.89 acres of non-core lands owned by it in the city at three different locations as part of ‘Operation Monetisation’ by fixing the upset price at Rs 480 crore.
RINL has already signed MoU with Tata International for Letter of Credit arrangement for procuring raw materials and another agreement with Jindal Steel and Power Ltd (JSPL) for running one of its blast furnaces. The MoU for reviving BF-3 named Annapurna is expected to ensure availability of Rs 800 to Rs 900 crore for RINL in the form of working capital advance/raw materials required for consistent operations of the furnace against which the company will supply nearly 90,000 tonnes of cast blooms per month from Steel Melt Shop-2 to JSPL.
As part of Operation Monetisation, efforts are on to privatise forged wheel plant near Rae Bareli in Uttar Pradesh and lease out part of its surplus lands to NMDC at the steel plant for establishing a pellet plant. This may fetch around 1500 crore.
RINL has already issued notification for e-auction of 67,277.04 square yards (equivalent to 13.89 acre) after developing plots and blocks. The reserve price varies from plot to block depending on road width and other parameters, a senior official of RINL connected to e-auction told Bizz Buzz.
The monetisation is being done by RINL through National Land Monetisation Corporation Ltd (NLMCL) and appointing NBCC (India) Ltd, a Navratna company as technical and transaction advisor.
Large extent of land identified for sale is available in HB Colony, Maddilapalem (11.89 acre) followed by two acres at Autonagar, Gajuwaka and 0.089 acre at Old Health Centre, Pedagantyada.
As per the time-table for the e-auction, the pre-bid meeting for interested bidders will be held on February 28. The last date for submitting EMD is March 5. A mock e-auction will be conducted on March 6. E-auction will be conducted on March 14. Acceptance letter to the successful bidders subject to fulfilment of all the required conditions as mentioned in the e-auction notification, will be issued between March 25 to 29.
“The investors’ meeting evoked a good response,” a RINL spokesman said. The roadshow was conducted in association with NBCC and NLMC where they clarified doubts from the prospective buyers.
Earlier, G Rajaram GM (Engineering), NBCC, G Gandhi, Chief General Manager (HR), RINL and Rohin Koppuravuri, GM, NLMC explained about the benefits of buying the plots/blocks.
For the purpose of this RFPl/E-auction, 67,277 square yards in the form of plots/blocks totalling 130 of various sizes are available for sale to the bidders. The non-core assets of RINL will be sold through online e-auction (through Railtel) in a transparent manner, Gandhi said.
