Steel ministry proposes merger of NMDC and KIOCL to FinMin: Govt source

The merger process will require clearances from several ministries, including the DPE under the Ministry of Finance, and is subject to regulatory approvals.

In a strategic move to consolidate public sector undertakings in the steel industry, the Ministry of Steel has proposed merging NMDC Limited with KIOCL Limited. A government source said that the proposal was submitted to the Ministry of Finance approximately a month ago.

"The proposal to merge NMDC and KIOCL has been sent by the Steel Ministry to the Department of Public Enterprises (DPE), Finance Ministry," the source said on January 6. This indicates the government's intention to merge the two entities, pending necessary clearances from various ministries and regulatory bodies.

KIOCL Limited, formerly known as Kudremukh Iron Ore Company Limited, is a Mini-Ratna CPSE under the administrative control of the Ministry of Steel. Established in 1976, KIOCL has been a significant player in iron ore mining and pellet production.

While NMDC Limited, a Navratna CPSE, is India's largest iron ore producer. In the financial year 2023-24, NMDC achieved a turnover of Rs 21,294 crore.

The merger process will require clearances from several ministries, including the DPE under the Ministry of Finance, and is subject to regulatory approvals. The proposal awaits consideration by the Ministry of Finance.