Hyderabad: Despite its 15-year long efforts toward achieving forward integration by setting up its own steel plant, NMDC Ltd, a Hyderabad-based mineral miner, has decided to cede the lead role in its proposed two steel plants to state-run steel makers — SAIL and RINL.
“The government felt that we (NMDC) are not basically a steel company. We are an iron ore mining company. RINL and SAIL are steel companies. So they (the government) have decided that SAIL will be taking the lead part in the SPV (special purpose vehicle), which was formed to set up steel plant in Chhattisgarh. NMDC and the state government will be parties to it. In our proposed Odisha steel plant, RINL will be the lead partner. NMDC and two state government organisations will be other partners,” NMDC chairman and managing director Narendra Kothari told this newspaper.
Kothari, however, added that the shareholding of NMDC and other participating companies is still being worked out.
All three companies — NMDC, SAIL and RINL — come under the administrative control of the Union ministry of steel.
NMDC-led SPV was constructing a three-million tonne per annum (mtpa) steel plant at Nagarnar in Chhattisgarh with Rs 15,525 crore investment, while the proposed steel mill at Keonjhar in Odisha was supposed to have a capacity of up to six million tonne.
The Hyderabad-based mineral miner had started its efforts to build a steel mill in 1999, when it sought to acquire Russia’s Romelt plant. Later, it had decided to go alone by roping in experts in steel making or partnering with steel producers.
