By March 2023, government likely to request preliminary offers for sale of NMDC's steel facility

5 Sep 2022 , 08:37 AM

By the end of March, the government is anticipated to release a request for proposals for the strategic sale of NMDC’s Nagarnar Steel Plant, according to a government official quoted by PTI.

The Chhattisgarh-based NMDC steel mill, currently under construction, is anticipated to start up this month. The Department of Investment and Public Asset Management (DIPAM) will handle the privatization of the Nagarnar Steel Plant after the demerger procedure is finished.

The sale will take place during the upcoming fiscal, which starts in April 2023.

The largest iron ore mining business in the nation, NMDC, is constructing a 3 million tonne per year steel plant in Chhattisgarh’s Nagarnar region, close to Bastar. At an estimated cost of Rs23,140 crore, the complex is being built over 1,980 acres.

Following the demerger, NMDC stockholders will also possess shares in the demerged business (NSP) in proportion to their ownership. As a result, the government will own 60.79% of NSP, while institutional and individual investors would own the remaining shares.

The official added that NSP’s valuation would need to be completed separately by the asset valuer and transaction advisor at a later point in the strategic sale process and that the exchequer would get all proceeds from the sale of the entire government interest.

The demerger of the plant from NMDC and the sale of the Centre’s whole interest to a strategic bidder were both approved by the Union Cabinet in October 2020.

For feedback and suggestions, write to us at [e-mail]