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May 29, 2012, 06.06 PM IST
State run iron ore maker NMDC says that the government may divest stakes in the company this year but there is no official communication fon the same,
In 2009-10, the government had disinvested 8.38% of its holding in NMDC aggregating through an offer for sale and made around Rs 9930.42 crore out the this disinvestment process, Beni Prasad Verma informed the Rajya Sabha recently.
Meanwhile NMDC's chairman and managing director NK Nanda told CNBC-TV18 that he is targeting sales of around 32 metric tonnes (MT) in FY13 .
The iron ore maker is setting up a 3.0 million tonne per annum integrated steel plant at Nagarnar, district Bastar, Chhattisgarh and 1.89 million tonne per annum beneficiation plant and 1.2 million tonne per annum pelletisation plant at Donimalai, district Bellary, Karnataka amongt others.
The company has earmarked a capex of Rs.4,655 crore. For the above mentioned capacity additions, the company said yesterday while announcing its March quarter results. It also said that its net profit declined 22% to Rs.1,642.28 crore mainly due to lower realisations on sale of iron ore. Net sales were down 45.35% at Rs.2,593.65, YoY.
Below is the edited transcript of Nanda’s interview with CNBC-TV18. Also watch the accompanying video.
Q: Could you tell us where things stand on the 10% divestment which was being spoken about? Have you heard anything from the government?
A: No, not yet. We have not heard anything about disinvestment. But we hear that it will be coming and we are ready, we are making ourselves ready for that. The numbers are out and we have done very well last year. Our production has gone up by 8% that is about 27.26 million tonne. Our sales also have grown by 4% that is 27.30 million tonne. Last year our turnover was Rs 11,261 crore.
Q: By when do you think divestment is likely happen? In the course of this calendar year you think? Is it still 10% that will be up for sale or has the quantum been changed around?
A: Today, 10% is disinvestment. 90% of that is government. We have to do another 15%, but have not yet received any administrative order from our administrative ministry. We understand that it may come this year. By the end of this year we may go ahead. Unless we get an order from the administrative ministry, we will not be able to do it.
Q: Can you just set out some targets for FY13 because you missed your production target in FY12? What is the production target for the new financial year and what do you think you may likely do in terms of realizations?
A: Next year we have put up a target of about 32 million tonne of sales. That will be our internal target. Because of our evacuation system we have improved in Bailadila sector. We are hopeful that we will get 32 million tonne. Our realization will increase by that much. This year we have achieved about Rs 11,261 crore of turnover. Next year it will be more than that.
Q: Can you give us some sense of what kind of mining output you are seeing from Karnataka now on a monthly basis?
A: In Karnataka, we are trying to do equal to one million tonne per month. Last year we tried but we could not do it. This year we will definitely make our arrangement so that we can achieve that one million tonne target per month. This year it maybe be less than one million tonne, it maybe about 75,000 tonne.
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