Media reports indicate that public sector iron ore miner NMDC received encouraging response from steel firms for the expression of interest (EOI) floated by it to sell 50 percent stake in an upcoming project.
The company is setting up a 3 million tonne per annum (mn tpa) steel plant at Nagarnar in Chhattisgarh with an investment of Rs 16,000 crore. Work on the project is almost half way through and it is slated to start production within the next couple of years.
The miner plans to garner Rs 8,000-10,000 crore from sale of its 50 per cent stake in the plant to a strategic partner. The company intends the partner to bring in necessary technologies capable of producing high-end steel products like CRGO, CRNO and auto-garde steels which India mostly relies on imports to meet the domestic demand, reports indicate.
NMDC wants to partner with a foreign company, having good reputation in the world steel market and sufficient experience of running steel mills.
But the firm may also consider partnering with local firms like Tata Steel, SAIL, JSW Steel, RINL, Jindal Steel and Power, Essar Steel.
It is learnt that NMDC would call for presentations from prospective partner and based on this an expert committee would take stock of the merits and demerits of the participants and call only two to three firms for financial negotiation.