Government-owned National Mineral Development Corporation (NMDC) plans to demerge its Chhattisgarh steel plant in Q3 2021 ending December, according to media reports.
The steel plant has an annual capacity of 3mn mt. The company has also made plans to build a 6mn mt capacity pellet plant in Visakhapatnam.
A draft for the demerger will be approved by the board by July 31.
The company is expecting to get a clearance from SEBI and the Competition Commission of India subsequently.
The approval process could take 100-160 days, starting August 1.
In FY 2020-21, the company sold 33.25mn mt of iron ore, while it produced 34.15 mn mt. NMDC’s production and sales rose by 8pc and 6pc respectively during this period. The company sold 31.51 mn mt iron ore and produced 31.49 mn mt in FY 2019-20