The Centre on Thursday set in motion the strategic disinvestment process of 50.79% stake in NMDC Steel Ltd. (NSL) by inviting expression of interest from bidders.
The EOI document, issued along with preliminary information memorandum by the Department of Investment and Public Asset Management, said the call is for purchase of the 50.79% shareholding along with transfer of management control through a single transaction.
The Centre will offer its remaining 10% stake in NSL to mining major NMDC Ltd. post identification of strategic buyer through a competitive bidding process. NSL will be entity behind the 3 million tonne integrated steel plant that NMDC is setting up at Nagarnar near Jagdalpur, Chhattisgarh. The estimated project cost of the plant is ₹21,940 crore and upto last fiscal, NMDC had incurred ₹20,514.48 crore towards construction of the plant.
The steel plant, subsequent to the decision of the Centre to disinvest, is being demerged from NMDC and transferred to NSL with the government of India owning 60.79% stake and public the rest. The plant is expected to commence operations from March 2023.
The demerger scheme was approved by the Ministry of Corporate Affairs on October 6.
SBI Capital Markets Ltd. (SBICAP) is acting as transaction advisor for the disinvestment process. Eligible entities can submit an EoI either independently or as a consortium member. The consortium can have a maximum of 4 members, including the Lead Member. January 27 is the last date for submission of EOI.
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