Nagarnar Steel Plant Of NMDC To Be Privatised – Free PDF Download

Q) Where is the HQ of World Steel Association?

1. Geneva
2. Vienna
3. Brussels
4. Lausanne

Q) Dharmendra Pradhan launched which mission to develop Eastern India into Integrated Steel Hub?

1. Saksham
2. Purvodaya
3. Purvottar
4. Ispaat

• Nagarnar steel plant is a 3 million tonne per annum (mtpa) integrated steel plant being set up by NMDC in Bastar district of Chhattisgarh over an area of 1,980 acres at a revised estimated cost of Rs 23,140 crore.
• As on date, NMDC has invested Rs 17,186 crore on the project, out of which Rs 16,662 crore is from NMDC”s own funds and Rs 524 crore has been raised from the bond market.
• NMDC is a listed central public sector enterprise.
• The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the demerger of the under-construction
• Nagarnar steel plant (NSP) from NMDC, and its strategic disinvestment by selling the entire stake of the Centre to a strategic buyer.
• State-owned NMDC, under the Ministry of Steel, is constructing the steel plant at Nagarnar in Chhattisgarh.
• The process of demerger and disinvestment will be initiated in parallel and disinvestment of the demerged company (NSP) is expected to be completed by September 2021
• With the approval, CCEA has amended its earlier decision taken on 27 October 2016 to disinvest Nagarnar Steel Plant as a unit of NMDC.
•  The proposal to demerge NSP into a separate company before its disinvestment has advantages.
• NMDC can focus on its core activities of mining.
• NSP shall be a separate company and the managements of NMDC and NSP shall be accountable for their respective operations and financial performance.
• Shareholders of NMDC will also be shareholders of the demerged company (NSP) in the proportion of their shareholding.
• The investors will have better visibility of the operations and cash flow of NMDC and NSP separately

Concerns

• The tribal community didn’t oppose the plant in the past as it was a public sector enterprise. Privatization of it will be a breach of trust.
• In the past, the Essar Group had plans to set up a three-million-tonne plant at Bailadila while Tata Steels wanted a similar 3-million-tonne plant at Lohandiguda.
• Mining in the sensitive tribal area by private players.
• Trust-deficit
• Protests

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