The Cabinet Committee on Economic Affairs (CCEA) has given its in-principle approval to the demerger of Nagarnar Steel Plant (NSP) from NMDC and strategic disinvestment of the demerged company (NSP) by selling entire Government of India stake in it to a strategic buyer. NMDC, under the Ministry of Steel, is constructing the steel plant at Nagarnar in Chhattisgarh. The CCEA has taken note that the process of demerger and disinvestment will be initiated in parallel and disinvestment of the demerged company (NSP) is expected to be completed by September 2021.
With the demerger, NMDC can focus on its core activities of mining. NSP shall be a separate company and the managements of NMDC and NSP shall be accountable for their respective operations and financial performance. Shareholders of NMDC will also be shareholders of the demerged company (NSP) in the proportion of their shareholding. The investors will have better visibility of the operations and cash flow of NMDC and NSP separately.
NMDC is a state controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.
| Company Name | CMP |
|---|---|
| Coal India | 441.65 |
| NMDC | 88.81 |
| GMDC | 691.40 |
| Sandur Manganese | 213.50 |
| MOIL | 321.05 |
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