The Cabinet Committee on Economic Affairs has given its ‘in-principle’ approval to the demerger of Nagarnar Steel Plant (NSP) from National Minerals Development Corporation (NMDC) Ltd.
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Key-Points
The Cabinet also approved strategic disinvestment of the demerged company (NSP) by selling the entire Government of India stake in it to a strategic buyer.
NSP is a three million ton per annum (mta) Integrated Steel Plant being set up by NMDC at Nagarnar, Bastar District, Chhattisgarh.
NMDC is a listed CPSE under the Ministry of Steel and Government of India has 69.65 % shareholding in the Company.
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.
The proposal to demerge the NSP into a separate company before its disinvestment has the following advantages:
- With demerger, NMDC can focus on its core activities of mining;
- After demerger, NSP shall be a separate company and the managements of NMDC and NSP shall be accountable for their respective operations and financial performance.
