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Jindal Steel eyes controlling stake in NMDC’s proposed Rs 15,000-crore steel plant

19 Mar 2013 Evaluate

Jindal Steel & Power (JSPL) has expressed its interest in partnering with state-owned National Mineral Development Corporation (NMDC) for developing the proposed Rs 15,000-crore steel plant in Chhattisgarh, provided the former gets a controlling stake in the latter’s steel venture.

Country's largest iron ore miner, NMDC, which is planning to set up 3-million tonne steel plant to set up at Nagarnar in Chhattisgarh's Bastar region, is scouting for a joint venture partner amongst steelmakers for running the plant. Interestingly, the project was initially conceived as a three-way JV between NMDC and PSU steel majors, Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL), before the company decided to go solo on this.

JSPL is also planning to expand steel-making capacity at its Raigarh plant in Chhattisgarh by 7 million tonnes per annum (mtpa) with an investment of Rs 24,000 crore. The company is planning to increase the plant capacity by 7 mtpa in two phases. In the first phase, it intends to expand the plant capacity by 4 mtpa by investing Rs 15,000 crore and by 3 mtpa in the second phase with Rs 9,000 crore outlay.

JSPL is a part of Jindal Group and is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. The company produces economical and efficient steel and power through backward integration from its own captive coal and iron-ore mines and passes on the benefits to its customers.

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