State-run iron ore miner NMDC today said the government have given in-principle approval to consider strategic disinvestment in Nagarnar steel plant.
“Steel Ministry has communicated the ‘in-principle’ decision of the Cabinet Committee on Economic Affairs (CCEA) of Government of India to consider strategic disinvestment of the Nagarnar Steel Plant of the Company,” it said in a regulatory filing.
The country’s largest iron ore miner, NMDC, is setting up a 3 million tonnes per annum (MTPA) integrated steel plant in Nagarnar in Bastar district of Chhattisgarh.
In June this year, an environment ministry panel gave clearance to a captive iron ore mine in Bastar for the plant. The plant is expected to start trial production by mid-2017.
The Bailadila Deposit-4, which has mineable iron ore of around 108 mt, will entail an investment of around Rs 1,900 crore.
The Chhattisgarh government and NMDC have inked an MoU for a slurry pipeline from Bailadila to Nagarnar, along with ore processing plants at Bailadila and a 2-mtpa pellet plant at Nagarnar with an investment of Rs 4,000 crore.