1. Government likely to raise Rs 750 crore through NMDC disinvestment

Government likely to raise Rs 750 crore through NMDC disinvestment

The Narendra Modi government is hoping to raise Rs 750 crore from the disinvestment of state-controlled mineral producer NMDC.

By: | Updated: January 8, 2018 5:24 PM
NDMC, iron ore, iron ore output, feed steel demand, production capacity, fully mechanised mines, iron ore production The Narendra Modi government is hoping to raise Rs 750 crore from the disinvestment of state-controlled mineral producer NMDC. (Image: Reuters)

The Narendra Modi government is hoping to raise Rs 750 crore from the disinvestment of state-controlled mineral producer NMDC, media reports said. The government has proposed to disinvest 1.5% stake in the National Mineral Development Corporation Ltd through Offer For Sale (OFS) at Rs 153.50 per share.

Earlier in July, NMDC said that the process for strategic divestment of NMDCBSE 2.11 %’s Nagarnar Steel plant in Chhattisgarh had kicked-off. “Very preliminary activities viz. appointment of Transaction Advisor, Legal Advisor and Asset Valuer for NMDC’s Steel Plant (NISP), Nagarnar, Chhattisgarh, has been completed and they have started collecting details,” the company had said in a filing to BSE.

The Department of Investment and Public Asset Management (DIPAM) has prepared strategic divestment plan as per the decision of the Cabinet Committee on Economic Affairs (CCEA) for strategic divestment of various public sector enterprises (PSEs), including Nagarnar Steel plant.

The country’s largest iron ore miner, NMDC, is setting up a 3 million tonnes per annum (MTPA) integrated steel plant in Nagarnar in Bastar district of Chhattisgarh.

NMDC — engaged in mining of iron ore, magnesite and diamonds — is the country’s single largest iron ore producer, presently producing and selling about 35 million tonnes (MT) of iron ore from three mines in Chhattisgarh and Karnataka.

NMDC — engaged in mining of iron ore, magnesite and diamonds — is the country’s single largest iron ore producer, presently producing and selling about 35 million tonnes (MT) of iron ore from three mines in Chhattisgarh and Karnataka.

Meanwhile, throwing a spanner in the government’s plans to privatise Air India the parliamentary panel on transport, tourism and culture has recommended that the national carrier should be given at least five years to revive and write-off its debt. The Parliamentary Standing Committee on Transport, Tourism and Culture concluded that the government should review its decision to privatise or disinvest Air India and explore the possibility of “an alternative to disinvestment of our national carrier which is our national pride”, reported PTI.

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