'NMDC's Nagarnar Steel Plant demerger expected by Aug-Sept'

New Delhi: The demerger process of NMDC's Nagarnar Steel Plant (NSP) in Chhattisgarh into a separate entity is expected to be completed by August-September of this year, a source said.

Nagarnar Steel Plant (NSP) is a 3 million tonne per annum (mtpa) integrated steel plant being set up by country's largest iron ore miner NMDC at Nagarnar in Chhattisgarh over an area of 1,980 acres at a revised estimated cost of Rs 23,140 crore.

The demerger is in process and it is expected to be completed by August-September 2021, the source said while replying to a question with respect to the completion of demerger of the said plant.

"Several regulatory approvals including that of Sebi are required to complete the (demerger) process. It also goes to the Ministry of Corporate Affairs for clearances," the source replied to another question on the processes involved in demerging any entity.

In August 2020, NMDC informed its board of directors giving an in-principle approval to the proposal to demerge its steel plant in Nagarnar, Chhattisgarh.

Subsequently in October, the Union Cabinet also approved demerger of the plant from NMDC, and its strategic disinvestment by selling the entire stake of the Centre to a strategic buyer.

Following the demerger, NSP shall be a separate company and the managements of NMDC and NSP shall be accountable for their respective operations and financial performance, the government had said.