NMDC plans steel plant in Karnataka | business | Hindustan Times
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NMDC plans steel plant in Karnataka

The country’s largest iron ore producer and Navaratna public sector undertaking National Mineral Development Corporation (NMDC) Ltd is planning to set up a 2-million tonne steel plant in Karnataka for Rs 15,918-17,737 crore, N. Srinivasan, joint general manager, said.

business Updated: Mar 08, 2010 21:22 IST

The country’s largest iron ore producer and Navaratna public sector undertaking National Mineral Development Corporation (NMDC) Ltd is planning to set up a 2-million tonne steel plant in Karnataka for Rs 15,918-17,737 crore, N. Srinivasan, joint general manager, said.

“The Karnataka government has already allocated 2,500 acres of land in the Bellary/Hospet area. We have also obtained the power and water connectivity for the plant,” Srinivasan said.

The plant would be NMDC’s second steel facility after the proposed 3-million tonne plant in Chhattisgarh, expected to be operational by 2014.

The company would look at a combination of debt and equity to fund the project, but the amount to be raised would be finalised after the completion of a detailed project report.

The government plans to sale 8.38 per cent in NMDC, bringing its share in the company to 10 per cent from the current 98 per cent. The stake sale will open on March 10 and close on March 12. The sale is part of the government’s plan to offload stakes in public sector units.