DIPAM floats EoI for Nagarnar steel plant

NEW DELHI: The Department of Investment and Public Asset Management (DIPAM) has invited expression of interest (EoI) for NMDC’s Nagarnar Steel Plant (NSL) to sell the government’s 50.79% stake, it said Wednesday. 

Eligible bidders can submit EoI either independently or in consortium with a maximum limit of four. 
The last date for submission of EoI is January 27 and the last date for query is December 29. Currently, the government’s stake in the steel plant is nearly 60.79%. It will retain about a 10% stake.

The plant has a capacity of 3 million tonnes per annum (mtpa) and it is yet to be commissioned completely. According to the document, it is scheduled for completion by March 2023. Currently, Nagarnar Iron and Steel Plant (NISP) is in the process of being demerged from NMDC into NSL. Post demerger, it will have a minor shareholding of NMDC and its shares will be listed on the stock exchanges. The demerger has been approved by the Ministry of Corporate Affairs in October this year. 

The Nagarnar plant is located in the Bastar district of Chattisgarh. The Union Cabinet in October 2020 had given its nod for the demerger of the steel plant in Chattisgarh from NMDC and the sale of the Centre’s “entire” stake in the unit to a strategic buyer.