India’s Cabinet Committee on Economic Affairs chaired by the Prime Minister Mr. Narendra Modi has given its in-principle approval to the demerger of Nagarnar Steel Plant from National Minerals Development Corporation Ltd. and strategic disinvestment of the demerged company Nagarnar Steel Plant by selling entire Government of India stake in it to a strategic buyer.
The CCEA has taken note that the process of demerger and disinvestment will be initiated in parallel, and disinvestment of demerged company (NSP) is expected to be completed by September 2021.
Nagarnar Steel Plant is a three million tonne per annum integrated steel plant being set up by NMDC at Nagarnar in Bastar District of Chhattisgarh in an area of 1980 acres at a revised estimated cost of INR 23,140 crore. As of date, NMDC has invested-INR 17,186 Crore on the project, out of which INR 16,662 crore is from NMDC’s own funds, and INR 524 crore has been raised from the bond market.
NMDC is a listed CPSE under the Ministry of Steel, and the Government of India has 69.65 % shareholding in the Company.
