The Indian government has denied any plans to merge two state-run companies, NMDC Limited and KIOCL Limited, according to a statement made by Bhupati Raju Srinivasa Varma, the junior minister of steel, during a parliamentary session on March 12. In response to a query, Varma confirmed that no proposal regarding the merger of the iron ore miner NMDC and pellet manufacturer KIOCL is currently under consideration.
Varma clarified that decisions regarding the privatization or merger of any public sector undertakings fall under the jurisdiction of the Department of Investment and Public Asset Management (Dipam), which operates under the Finance Ministry.
This statement comes after reports in January suggested that the Ministry of Steel had proposed the merger of NMDC, which produces around 40 million metric tons of iron ore annually, with KIOCL, which operates a 3 million metric tons per year pellet plant. The merger was believed to aim at achieving synergies and economies of scale for the two government-owned companies. However, with the government’s clarification, any such plans appear to have been ruled out for now.
VietnamSteel by Hoa Sen Group
