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. 

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. 

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.