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Two firms show interest in NMDC's Rs 15K-Cr steel project

Last Updated: Friday, April 12, 2013 - 19:48

New Delhi: NMDC has received expression of interest from just two firms as joint venture partner for the state-run miner's Rs 15,525 crore Chhattisgarh steel project, for which 30 percent work has already been completed.

"We have received two applications," a company official said, adding identities of the interested parties can not be disclosed at the moment.

NMDC had in February invited expression of interest (EoI) from leading steel makers, both Indian and global, for roping in a strategic joint venture partner for its three million tonnes per annum (mtpa) steel plant.

The deadline for responding to the EOI ended at 17:00 hrs Friday.

An industry expert said the response has been lukewarm going by just two applicants for the project, particularly when 30 percent of the work has already been completed.

NMDC wanted its joint venture partner to stay put on a long-term basis for its successful operation and maintenance.

Though the EOI stated a maximum of upto 49 percent would be offered in the project, a steel Ministry Official had later said NMDC was ready to offer upto 50 percent stake in the project for up to Rs 10,000 crore.

The EOI had stated that "the extent of equity participation by the strategic joint venture partner shall be firmed up at subsequent stage."

The Rs 15,525 crore project cost was envisaged to be financed in 1:4 debt-equity ratio. NMDC's maiden venture into steel is scheduled to be commissioned by September 2015.

The company hopes 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.

The company which would ensure uninterrupted coking coal supply would be given preference, NMDC had said.


First Published: Friday, April 12, 2013 - 19:48
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