Tata Steel, ArcelorMittal-Nippon Steel India unlikely to bid for NMDC unit
Tata Steel and ArcelorMittal-Nippon Steel India (AM/NS India) may not bid for NMDC’s privatisation-bound, under-construction 3 million tonnes per annum (mtpa) steel unit at Nagarnar in Chhattisgarh. This leaves Sajjan Jindal’s JSW Steel, Naveen Jindal’s Jindal Steel and Power and new entrants into the steel sector like Vedanta and Adani Group, in the fray.
The Centre had in October 2020 approved demerger of the unit from the parent NMDC and strategic disinvestment of the demerged entity by selling its entire stake in it to a strategic player. NMDC is likely to complete the demerger process by August-September, coinciding with the commissioning of the unit. Following this, bids for the demerged entity would be called for.
NMDC may end up spending around Rs 22,000 crore, higher by Rs 6,500 crore than originally estimated, for the plant mainly due to seven years of time overrun
