SEATTLE (Scrap Monster): The government plans to release a request for proposals towards the strategic sale of NMDC’s Nagarnar Steel Plant (NSP) in Chhattisgarh by end of March this year. It must be noted that the plant is currently under construction and is scheduled to start operations this month.
The country’s leading miner NMDC is constructing the 3 million tonne per year steel plant close to Bastar at an investment of approximately INR 23,140 crore. Upon completion of the demerger process, the privatisation of the steel plant will be handled by the Department of Investment and Public Asset Management (DIPAM). The final sale is proposed to be held during the forthcoming fiscal year.
After demerger, shareholders of NMDC will also receive shares in the demerged business proportionate to their ownership. Further to this, the government shareholding in NSP will be 60.79%, whereas the remaining shares would be owned by institutional and individual investors. The steel plant will be valuated separately at a later point. The proceeds from the entire government stake in the plant will be credited to the exchequer.
The Union Cabinet had approved the demerger of the plant from NMDC and sale of government’s 100% interest in October 2020.
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