NMDC Raising Fund for Completing Nagarnar Steel Plant
Financial Express reported that State-run iron ore miner NMDC is in talks with banks and other financial institutions to raise around INR 5,000 crore debt to part-fund its under-construction INR 21,300-crore Negara Steel Plant that is likely to be operationalized by October 2021. NMDC’s CMD Mr Sumit Deb said the proposed demerger of NSP will happen almost around the same time the plant will be operationalized around October this year. He said “Once the steel plant is demerged, the debt will also be transferred with the steel plant. The average interest rate of the debt is likely to be around 7%.”
India’s Cabinet Committee on Economic Affairs had on October 14, 2020 gave its ‘in-principle’ approval to the demerger of NSP from NMDC and strategic disinvestment of the demerged company by selling entire stake of the government to a strategic buyer.