Government seeks proposals to privatise NMDC's Steel Plant
Steel

Government seeks proposals to privatise NMDC's Steel Plant

The government released a solicitation for the strategic sale of the Nagarnar Steel Plant owned by NMDC. According to the Department of Investment and Public Asset Management (DIPAM), the deadline for NMDC Steel Ltd. offers is January 27, 2023, while the deadline for questions is December 29, 2022.

NISP is now being separated from NMDC and incorporated as NMDC Steel Ltd. (NSL). Shares of NSL will be listed on BSE, National Stock Exchange of India Limited, and Calcutta Stock Exchange following the demerger.

Government of India (GoI) shareholding will be 60.79 percent and public shareholding will be 39.21 percent for NSL, mirroring NMDC's shareholding.

After that, the GoI will use a two-stage competitive bidding process to sell its 50.79 percent ownership of NSL to a strategic buyer along with management control.

On October 6, 2022, the Ministry of Corporate Affairs (MCA) already approved the demerger scheme.

According to the DIPAM, the GoI is initially seeking expressions of interest from potential buyers for the sale of its 50.79 percent stake in NSL.

A 3-million tonne per year (MTPA) NMDC Iron and Steel Plant (NISP) is being built by NMDC in Chhattisgarh near Jagdalpur. The NISP is currently under construction and should be operational by March 2023.

The demerger of NISP from NMDC and strategic disinvestment of the emerging business by selling the entire interest of the Indian government were both approved by the Union Cabinet in principle in October 2020.

As a result, GoI decided to sell its 50.79 percent stake in NMDC Steel Ltd, as well as management control. Furthermore, after the strategic buyer is identified through the bidding process, the GoI will offer NMDC a 10% stake in NMDC Steel.

See also:
Tata Group firm TSLP completes purchase of Neelachal Ispat
Tata Steel, ArcelorMittal-Nippon Steel may not bid for NMDC facility


The government released a solicitation for the strategic sale of the Nagarnar Steel Plant owned by NMDC. According to the Department of Investment and Public Asset Management (DIPAM), the deadline for NMDC Steel Ltd. offers is January 27, 2023, while the deadline for questions is December 29, 2022. NISP is now being separated from NMDC and incorporated as NMDC Steel Ltd. (NSL). Shares of NSL will be listed on BSE, National Stock Exchange of India Limited, and Calcutta Stock Exchange following the demerger. Government of India (GoI) shareholding will be 60.79 percent and public shareholding will be 39.21 percent for NSL, mirroring NMDC's shareholding. After that, the GoI will use a two-stage competitive bidding process to sell its 50.79 percent ownership of NSL to a strategic buyer along with management control. On October 6, 2022, the Ministry of Corporate Affairs (MCA) already approved the demerger scheme. According to the DIPAM, the GoI is initially seeking expressions of interest from potential buyers for the sale of its 50.79 percent stake in NSL. A 3-million tonne per year (MTPA) NMDC Iron and Steel Plant (NISP) is being built by NMDC in Chhattisgarh near Jagdalpur. The NISP is currently under construction and should be operational by March 2023. The demerger of NISP from NMDC and strategic disinvestment of the emerging business by selling the entire interest of the Indian government were both approved by the Union Cabinet in principle in October 2020. As a result, GoI decided to sell its 50.79 percent stake in NMDC Steel Ltd, as well as management control. Furthermore, after the strategic buyer is identified through the bidding process, the GoI will offer NMDC a 10% stake in NMDC Steel. See also: Tata Group firm TSLP completes purchase of Neelachal IspatTata Steel, ArcelorMittal-Nippon Steel may not bid for NMDC facility

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000