Hyderabad: The Ministry of Corporate Affairs (MCA) has approved the demerger of NMDC Steel, also known as Nagarnar Steel Plant, a three-million tone capacity plant in Chhattisgarh, from NMDC Ltd, the iron ore miner said. "This is to inform you that the Company is in receipt t of the MCA Order dated 06.10.2022 received on 11.10.2022 sanctioning the Scheme, and the same is annexed to this letter. Request you to kindly take the same on record and oblige," NMDC said in a communication to BSE on October 11 night.
The PSU is in the process of complying with the requirements as envisaged in the MCA Order and the observation letters received from Bombay, Calcutta and National Stock Exchanges, NMDC said.
NMDC is in the process of demerging its three-million Greenfield steel plant it built at Nagarnar in Chhattisgarh with an investment outlay of over Rs 20,000 crore. After de-merger, NMDC will seek investors for Nagarnar Steel Plant.
In October 2020, the Union Cabinet had approved the demerger of NSP from NMDC, and sale of the Centre's entire stake to a strategic buyer.