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NMDC Aims At Commissioning Steel Plant By March '22

The Union Cabinet also approved demerger of the plant from NMDC, and its strategic disinvestment by selling the entire stake of the Centre to a strategic buyer.

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State-owned iron-ore major NMDC Ltd is aiming at commissioning its steel plant in Chhattisgarh by early Q4 (January-March 2022) and the company has started the filing process with stock exchanges and SEBI for its demerger, an official said on Monday.

The capex outlay for the company in 2021-22 is around Rs 3,750 crore and of which Rs 2150 crore will be for the steel project, the official said.

NMDC is setting up a 3 million tonne per annum (mtpa) greenfield integrated steel plant under NMDC Iron & Steel Plant (NISP) at Nagarnar, located 16 km from Jagdalpur in Chhattisgarh state. The decision to construct the NISP was taken keeping in view the linkage with iron ore reserves and availability of investible surplus.

''Demerger and listing of the new steel company may take about another 4-5 months,” the official said.

Amid fall in iron-ore prices by 25 per cent in a month, the company management remained optimistic about price and demand, given the domestic supply situation.

In August 2020, NMDC informed its board of directors giving an in-principle approval to the proposal to demerge its steel plant in Nagarnar.

Subsequently in October, the Union Cabinet also approved demerger of the plant from NMDC, and its strategic disinvestment by selling the entire stake of the Centre to a strategic buyer.

Following the demerger, NSP shall be a separate company and the managements of NMDC and NSP shall be accountable for their respective operations and financial performance, the government had said. 

(PTI)


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