The government is considering the merger of pellet maker KIOCL with iron ore giant NMDC, according to Union Steel Minister HD Kumaraswamy, who described KIOCL as being in a 'critical condition.'
Speaking on the sidelines of a press conference where a revival package of Rs 11,440 crore for Rashtriya Ispat Nigam Ltd (RINL) was announced, Kumaraswamy revealed that KIOCL has been facing significant financial challenges, including reporting losses, according to a report by Economic Times. He further stated that the situation has been exacerbated by a lack of cooperation from the Karnataka state government, the report added.
KIOCL Ltd, which operates under the Ministry of Steel, runs a 3.5 million tonne per annum iron-oxide pellet plant and a blast furnace unit that produces 2.16 lakh tonnes of pig iron annually at its facility in Mangaluru, Karnataka.
On the other hand, NMDC, also under the Ministry of Steel, supplies about 20 percent of India’s iron ore demand.
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