India’s NMDC approves demerger of steel mill project into separate company

Monday, 31 August 2020 13:59:58 (GMT+3)   |   Kolkata
       

Indian state-run miner NMDC Limited has approved the demerger of its 3 million mt per year greenfield steel mill project into a separate entity - NMDC Iron and Steel Plant Limited, the company said in a regulatory filing.

The company is building the steel mill in Chhattisgarh state close to NMDC’s flagship iron ore mines and the completion of the project has been delayed by the pandemic, company officials said.

Though not officially confirmed, several government sources said that the demerger of the steel mill project into a separate company is a precursor to the ultimate disinvestment of shares in the project to private investors.

In response to such unofficial reports, Chhattisgarh chief minister Bhupesh Baghel has written a letter to Indian prime minister Narendra Modi, opposing any move to privatize the steel mill project in favor of private investors.


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