NEW DELHI: Essar Group is trying to re-enter the steel business, as it submitted an expression of interest (EoI) for NMDC Steel Plant, a subsidiary of government-owned NMDC Ltd, according to market sources.
The Group’s steel business – Essar Steel – was acquired by ArcelorMittal Nippon Steel through a corporate insolvency resolution process in 2019.
“Essar Group is one of the serious bidders for NMDC Steel Plant at Nagarnar, Chattisgarh. It submitted its expression of interest through SBI Capital on January 27. It is also looking to set up its new plants and has been looking for land aggressively in Odisha and Karnataka,” a person in the know confirmed to this newspaper.
“To start with, the company is looking to expand its capacity in the steel business up to 3-4 million tonnes per annum and then it will gradually expand it to 8-10 million tonnes per annum, “ the person cited above said.
The central government will sell 50.79% of its 60.79% stakes in Nagarnar-based NMDC Steel which is being set up with an investment of Rs 20,000 crore.
The new plant with an annual capacity of 3 million tonnes per annum is expected to be commissioned by the end of the current fiscal. The government has received multiple EoIs for the strategic disinvestment of NMDC Steel Ltd, tweeted DIPAM Secretary Tuhin Kanta Pandey on Friday.
This newspaper had reported last week that Tata Steel, Jindal Steel and Power (JSPL), JSW, Vedanta and Tata Steel have submitted their EoIs.