NEW DELHI: JSW, Jindal Steel and Power (JSPL), Essar Group and Adani Group are among the five shortlisted bidders for the strategic disinvestment of government-owned under-construction plant – NMDC Steel Ltd – at Nagarnar, Chhattisgarh.
NMDC Steel was recently demerged from NMDC Ltd. The central government will offload 50.79% of its 60.79% shares in the Nagarnar unit that 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 likely to be commissioned by the end of current fiscal.
Experts are saying the government may get over Rs 25,000 crore based on the plant’s capacity and investment already occurred. “Adani May not be the serious contender due to the ongoing controversy,” one of the sources said while further adding that Tata Steel is not among the shortlisted bidders. The 3 MTPA plant sale will be a big big win for the government.
The government had received multiple expressions of interest (EoI) for the disinvestment of NMDC Steel on the last date of EoI submission, which was January 27. The plant is 290 km away from the Vizag port. Though it is running behind schedule, it is likely to be highly profitable as it is in proximity to mines and ports and has captive iron ore mines.
Also high quality equipment and technology are being supplied by high-quality European players, as per market experts. NMDC Steel got listed on February 20 with an opening price of `30.25 on the BSE and immediately hit the 5% upper circuit.