The government is likely to invite financial bids for privatizing NMDC Steel only after the commissioning of the blast furnace at the company’s steel plant in Chhattisgarh, according to officials.
Officials expect the value of the company to go up once the blast furnace of the steel plant becomes operational. NSL is expected to have a production capacity of 3 mln tons per annum. The government holds a 60.79 pct stake in NMDC Steel Ltd (NSL) after it got demerged from NMDC, which is India’s largest iron ore producer.
The facility is located in Nagarnar, Chhattisgarh. The remaining 39.21 pct stake is with the public.
NSL is up for privatization with the government looking to sell 50.79 pct of its shareholding, along with management control. The government had received multiple preliminary bids or expressions of interest for the company.
Officials said the government will get to know the fair value of NSL once the blast furnace is commissioned and production starts. The privatization of NSL is expected to be completed in the current fiscal.
