NMDC creates wholly owned subsidiary company

NEW DELHI: Iron ore miner NMDC has created a wholly-owned subsidiary vesting iron and steel plant with the arm.

In a BSE filing, the company today said it "has incorporated a wholly-owned subsidiary company by the name NMDC Steel Ltd for the purpose of transferring of NMDC's Iron and Steel Plant (NISP) into the said wholly owned subsidiary company."

NMDC is setting up a three million tonne per annum (mtpa) steel plant at Nagarnar in Chhattisgarh with Rs 15,525 crore investment.

The company is also in the process of acquiring 3,000 acres in Karnataka for setting up its second steel plant with a similar capacity, at a likely investment of Rs 18,000 crore.

NMDC, however, did not mention whether it would transfer only the Nagarnar unit to the newly-created subsidiary or even the Karnataka unit also in future.

Shares of the company were trading at Rs 145.95 apiece during the afternoon trade in the BSE.