NMDC’s Chairman & Managing Director expects the demerger of three million tonnes integrated steel plant Nagarnar to be completed by the second quarter of FY23 but the chairman refused to divulge details on the government’s divestment plans for the plant.
Speaking to Moneycontrol at the sidelines of India’s Coal Outlook 2022 conference arranged by SteelMint on August 3, the managing director Sumit Deb said, “We expect the demerger to take place before the end of September 2022 since the plant would have to undergo various clearance including the ones from Ministry of Corporate Affairs, however, the divestment which is driven by the government would unfold at its own pace.”
Driven by strategic imperatives, the country's largest iron ore mining company NMDC forayed into pellet making and the integrated steel plant at Nagarnar near Bastar in Chattishgarh. The unit has been constructed over Rs 1,980 acres at an estimated cost of Rs 23,140 crore.
Timeline Of the Demerger ProcessNMDC in August 2020, informed its board of directors' decision to approve the proposal of demerge the plant. Subsequently in October 2020, the Union Cabinet also approved the demerger of the under-construction steel plant from NMDC, and its strategic disinvestment by selling the entire stake of the Centre to a strategic buyer. The shareholders, and creditors only approved the merger in June 2022.