NMDC to float EOI for steel venture

Miner willing to offer managerial control to partner.

Written by Priyadarshi Siddhanta | New Delhi | Published:May 2, 2013 1:55 am

Miner willing to offer managerial control to partner.

State-run miner NMDC will seek the approval of its board next week on floating a fresh Expression of Interest (EOI) and offer “managerial control” for its greenfield steel plant in Chhattisgarh.

After its earlier EoI in February drew a tepid response,the company is willing to walk an extra mile by considering the offer equal stake to the partner to help bring new technology for the plant which is estimated to cost about Rs 15,500 crore.

NMDC is setting up a 3 Million Tonne integrated steel plant at Nagarnar in Bastar district of Chhattisgarh and has acquired 788 acres of private land for which it has disbursed around Rs 85 crore to a total of 1,052 families.

It has already ordered packages for the plant valued at around Rs 13,500 crore. But the finance ministry had late last year objected to the state-run miner going solo in setting up the plant arguing that making steel is not its core area of competence.

“We will seek our Board’s approval in floating another EoI for roping in a strategic partner for our Nagarnar plant We will seek approval for offering managerial control for the plant which is aimed at helping us get a new technology for the project,” NMDC chairman CS Verma told The Indian Express.

There were reports of various steel firms showing interest in response to the EoI. The aspirants included Nippon Steel & Sumitomo Metal,US Steel,ArcelorMittal and Posco. But the talks fizzled out due to issue of majority stake and denying managerial control.

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