The demerger process of NMDC's Nagarnar Steel Plant (NSP) in Chhattisgarh into an individual entity is expected to be completed by August-September of this year, a source informed.
Nagar Steel Plant (NSP) is a 3 million tonne per annum (mtpa) integrated steel plant being set up by country's biggest iron ore miner NMDC at Nagarnar in Chhattisgarh over an area of 1,980 acres at a revised estimated cost of Rs 23,140 crore.
The demerger is in procedure and it is likely to be completed by August-September 2021, the source said while answering to a question with respect to the completion of demerger of the said plant.
"Several regulatory approvals including that of Sebi are required to complete the (demerger) process. It also goes to the Ministry of Corporate Affairs for clearances," the source answered to another question on the processes involved in demerging any entity.
In August 2020, NMDC informed its board of directors giving an in-principle endorsement to the proposal to demerge its steel plant in Nagarnar, Chhattisgarh.
Consequently in October, the Union Cabinet also permitted demerger of the plant from NMDC, and its strategic disinvestment by selling the entire stake of the Centre to a strategic buyer.
Following the demerger, NSP shall be a separate firm and the managements of NMDC and NSP shall be accountable for their respective operations and fiscal performance, the government had stated.