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Cabinet approved demerger of Nagarnar Steel Plant from NMDC Ltd

Cabinet approved demerger of Nagarnar Steel Plant from NMDC Ltd

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:

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