Chhattisgarh state to pick up controlling interest in NMDC steel mill project

Tuesday, 16 March 2021 14:20:06 (GMT+3)   |   Kolkata

The government of India’s Chhattisgarh state has decided to buy out a majority stake in Indian state-run miner NMDC Limited’s greenfield steel mill project, once the asset is put up for disinvestment, a Chhattisgarh government official said on Tuesday, March 16.

The official said that the 3 million mt per year capacity steel mill is being constructed by NMDC in Chhattisgarh and is slated to go into production later this year, adding that the state government has approved a decision to buy out 51 percent of equity in the project, as decided by the Indian central government.

According to the official, it is in the interest of Chhattisgarh state to take ownership of the steel mill project in place of any private investors, as locals had handed over their land for construction of the project and the state government keeping ownership of the plant would ensure that the developmental interests of locals were protected.

The central government’s Cabinet Committee for Economic Affairs (CCEA) had earlier given approval for the sale by state-run miner NMDC Limited of 51 percent of equity in the steel mill project to a private investor.

About 95 percent of civil work, structural erection and equipment installation has been completed and power to the coke oven battery has been switched on, while trial production of hot rolled coil (HRC) is expected around July this year.

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