nmdc steel plant Acquisition of NMDC's Steel Plant in Chhattisgarh
ArcelorMittal and JSW Steel Compete for Acquisition of NMDC's Steel Plant in Chhattisgarh
ArcelorMittal, JSW in NMDC steel plant race; JSPL also in the fray
Introduction:
ArcelorMittal and JSW Steel are two major steel producers that are currently in a race to acquire the state-owned National Mineral Development Corporation's (NMDC) steel plant in Chhattisgarh, India. The plant is expected to be sold to a private entity under India's disinvestment policy. This article provides an overview of the competition between the two companies for the acquisition of the plant and its potential implications for the Indian steel industry.
Background:
The NMDC steel plant is located in Nagarnar, Chhattisgarh and has an annual production capacity of 3 million tonnes of steel. The plant has been under construction since 2011 and was originally scheduled to begin operations in 2014. However, due to various issues, the project has been delayed several times, and it is currently expected to start production in 2023. The Indian government has decided to privatize the plant under its disinvestment policy, and several major steel producers have expressed interest in acquiring the facility.
Competition between ArcelorMittal and JSW Steel:
ArcelorMittal and JSW Steel are the two major steel producers that are currently competing for the acquisition of the NMDC steel plant. ArcelorMittal, the world's largest steel producer, has reportedly submitted a bid of INR 2,500 crore ($340 million) for the plant, while JSW Steel has submitted a bid of INR 1,500 crore ($205 million). The Indian government has set a reserve price of INR 1,750 crore ($240 million) for the plant, and the highest bidder will be awarded the project.
Implications for the Indian steel industry:
The acquisition of the NMDC steel plant by either ArcelorMittal or JSW Steel will have significant implications for the Indian steel industry. The plant has the potential to increase the production capacity of the acquiring company, and it could also lead to the development of downstream industries in the region. The acquisition could also help in the modernization and upgradation of the Indian steel industry, which is currently dominated by small-scale producers.
Conclusion:
The competition between ArcelorMittal and JSW Steel for the acquisition of the NMDC steel plant in Chhattisgarh highlights the growing interest of major steel producers in India's steel industry. The acquisition of the plant by either company could have significant implications for the Indian steel industry, and it will be interesting to see which company emerges as the winner in this race. The Indian government's decision to privatize the plant under its disinvestment policy is a positive step towards the modernization of the Indian steel industry and could lead to its growth and development in the future.
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