The Hindu Business Line : NMDC to acquire majority stake in KIOCL

Sharing agenda: The Union Minister for Steel, Mr Virbhadra Singh (right), with the Minister of State, Mr A. Sai Prathap, during release of 100 days agenda of the Ministry of Steel, in the Capital on Wednesday.

Our Bureau

New Delhi, June 10

National Mineral Development Corporation (NMDC) will acquire a majority stake in the troubled KIOCL (formerly Kudremukh Iron Ore Co Ltd).

Addressing his first press conference since becoming the Union Minister of Steel, Mr Virbhadra Singh, on Wednesday also shared the Ministry’s agenda for the first 100 days of the new Government.

Mr Singh said he did not see a need to push for safeguard measures, which the steel producers have been demanding. “Dumping has many connotations and I don’t think such a measure can be justified now,” said Mr Singh.

Last month, a committee of secretaries had deferred a decision and asked the Director General Safeguards to come back with views of the user industry in 60 days.

Restructuring small PSUs

Stating that there was a critical need to restructure smaller PSUs, the Minister said that the committee, studying the possibility of mergers or restructuring of Metal Scrap Trading Corporation Ltd, Ferro Scrap Nigam Ltd (FSNL), Hindusthan Steelworks Construction, will submit its recommendations to the Ministry in the next 50 days.

The strategic understanding between NMDC — which will acquire at least 51 per cent stake — and the Karnataka-based pellet plant and blast furnace, which will receive a continuous source of iron ore once acquired by NMDC, will be finalised before three months.

Merger

The merger of NMDC and Sponge Iron India Ltd is also expected to be completed in that time. The Ministry also expects to set up the proposed joint venture between Shipping Corporation of India (SCI) and Steel Authority of India (SAIL) for the latter’s shipping needs in the next 100 days.

SAIL, Rashtriya Ispat Nigam Ltd and NMDC have planned investments of nearly 13,000 crore in the current year in the ongoing capex and modernisation projects.

Mr Singh said the plans would be closely monitored to ensure time-bound progress, and readjustments will be considered depending on the availability of funds.

More Stories on : Mergers & Acquisitions | Minerals | PSU

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