NMDC shareholders to discuss Nagarnar Steel Plant demerger on Tuesday

Steel ministry will convene a meeting of shareholders and creditors of state-owned NMDC on Tuesday to expedite the process of demerging the company's under construction Nagarnar Steel Plant (NSP).

The Centre is aiming to complete the demerger of NSP from MMDC within the next four to five months, according to an official document.

NMDC is setting up a 3 million tonne per annum (mtpa) steel plant at Nagarnar, near Bastar in Chhattisgarh. The unit is being constructed over an area of 1,980 acres at an estimated cost of Rs 23,140 crore.

"The next big event in the demerger calendar is on June 7, when there is a meeting of creditors and meeting of shareholders. Additional Steel Secretary Rasika Chaube has been nominated to chair both the meetings," as per the document.

According to the document, the government is following very hard regarding the demerger process. "DIPAM is pursuing very strongly... things would be expedited. After June 7, another (it will take) four to five months maximum (to complete the demerger process)," it added.

In October 2020, the Union Cabinet approved the demerger of the NSP from NMDC, and sale of the Centre's entire stake to a strategic buyer.

As per the plan, post demerger, NSP will be a separate company.