NMDC delayed commissioning of its newly demerged steel plant

New Delhi: NMDC Limited, India's largest iron ore miner, has delayed the commissioning of its newly demerged steel plant, NMDC Steel, to the end of June 2023. The Nagarnar plant, with a 3 million tonne annual capacity, has already missed several deadlines, with the last one set by the Steel Ministry for March 31st. 

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Despite the delays, NMDC expects to start producing by June-end, as the coke oven batteries, central plant, power blowing unit, and oxygen plant have all been commissioned. The company has set a production and dispatch target of 46-50 million tonnes for FY24. 

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The delay will impact the government's plans to divest a 50.79% equity stake in NMDC Steel Limited to a private investor. The government has received multiple responses to the expression of interest, but the divestment will only move forward after commissioning of the mill to secure a better valuation. If the commissioning is successful, the government will aim to complete the privatisation within the first half of the fiscal year 2023-24.

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