With NMDC Limited slated to commence trial production at its 3 million mt greenfield steel mill project within the next two months, the Indian government has officially stated that plans to privatize the project have been scrapped, a communication from India's Ministry of Steel to the Chhattisgarh government, stated.
According to the communication, the government has shelved plans to ask state-run iron ore miner NMDC Limited to hive off at least a 51 percent equity stake in the steel mill to a private investor with the miner being a minority stakeholder in the project.
Officials said that the government shelved privatization of the steel mill as it is of the view that the project located in Chhattisgarh and close to commissioning needed stability in ownership and changes in the ownership structure are not desirable so close to commissioning as the existing management will need to focus on stabilizing trial runs and to prepare for commercial production next year.
At the same time, privatization plans were taken off the table since NMDC has already firmed up plans to double the capacity of the greenfield steel mill soon after commercial production stabilizes, the official added.