The centre has received several expressions of interest (EoIs) to acquire a 50.79% stake in NMDC Steel (NSL), which is under construction in Nagarnar, Chhattisgarh.

“Multiple Expressions of Interest (EoI) received for strategic divestment of NMDC Steel Ltd (NSL). The deal will now move to Phase 2,” tweeted Tuhin Kanta Pandey, secretary of the Department of Investment and Public Assets Management (Dipam).

The last date for interested bidders with a net worth of Rs 5,000 crore to submit their NSL EoI is January 27. After the selection of qualified bidders, the second phase of financial bidding will be conducted.

Odisha-based Neelachal Ispat Nigam (NINL) is jointly owned by four Central PSUs and two Odisha Government PSUs following a successful strategic divestment from the Tata Group for Rs 12,100 crore in January 2022, NSL will become the second steel company to be spun off.

State-run mining giant NMDC is setting up a 3 million tonnes per annum NMDC Steel Plant (NISP) in Nagarnar.

Currently, NISP is being separated from NMDC into NSL. After the spin-off process is complete, NSL will have a mirrored shareholding with NMDC, with the centre holding 60.79% and the public holding 39.21%. After that, the centre will sell its 50.79% stake in NSL and management control to a strategic buyer through a two-stage bidding process.

In addition, Dipam said the centre would offer NMDC a 10% stake in NSL after identifying a strategic buyer through a bidding process.

In addition, the plant assets and liabilities mentioned in the spin-off plan will be owned/held by NSL. The Ministry has approved NSL’s spin-off plan of Corporate Affairs at a hearing on October 6, 2022.

Only interested bidders who meet the eligibility criteria will proceed to the next stage of the transaction, which includes detailed due diligence and submission of financial bids.