India’s steel producer Tata Steel received a letter of award to acquire a 93.71% equity stake of Neelachal Ispat Nigam Limited (NINL), a state-owned steel producer, through its subsidiary Tata Steel Long Products, and the acquisition process will be completed in the next couple of months. Tata Steel has earlier been selected as a winning bidder to acquire NINL for Rs 12,100 crore.

credit rating agency Moody's Investors Service (Moody's) said this acquisition is favorable to credits as it will increase the Tata Steel Long Products’ long steel production capacity and its iron ore reserves.

Tata Steel said that NINL's 1.1 million tons per year of long steel-producing capacity will be raised to 5 million tons per year in the first phase and 10 million tons per year in later phases.