homeinfrastructure NewsSteel ministry seeks deferment of NMDC's Nagarnar steel plant's demerger and divestment plan
Steel ministry seeks deferment of NMDC's Nagarnar steel plant's demerger and divestment plan
In a bid to garner revenue, the government has identified 55 public sector units (PSUs) for implementation of divestment, strategic sale and asset monetisation. NMDC is a part of the divestment plan.
The steel ministry has written to the Department of Investment and Public Asset Management (DIPAM) seeking deferment of National Mineral Development Corporation's (NMDC) Nagarnar steel plant’s demerger and divestment plan till the completion of the project, sources told CNBC-TV18.
In a bid to garner revenue, the government has identified 55 public sector units (PSUs) for implementation of divestment, strategic sale and asset monetisation. NMDC is a part of the divestment plan.
“Any move to divest NMDC’s Nagarnar plant will adversely impact project completion work. The project has already witnessed delay in commissioning and cost overrun,” said an official aware of the matter.
NMDC’s Nagarnar steel plant is planned for 3MTPA capacity. It saw a delay in commissioning post CCEA nod on divestment in 2016. It is now expected that the steel plant will be commissioned by June 2020 as it's in the advanced stages of completion.
NMDC, as a company, is also opposed to the plan of the demerger of the Nagarnar steel plant for 100 percent divestment at a later stage.
“NMDC has invested Rs 15,937 crore so far and another Rs 7,203 crore is likely to be invested over the 8 months. The demerger will affect its cash flow and capex plans for acquiring new mines in the future,” said a source, who did not want to be named.
The government plans to raise Rs 1.05 lakh crore in FY20 to meet its divestment target.
First Published: Sept 30, 2019 1:47 PM IST
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