The Indian government is indicating that it will not push ahead with the privatization of the 3 million mt per year capacity greenfield steel mill set up by state-run miner NMDC Limited, government sources said on Monday, October 23.
The sources said that the steel mill, which is in the process of starting commercial production in the central state of Chhattisgarh under NMDC Steel Limited, an arm of NMDC Limited, would not be privatized, in keeping with the sustained demand from the Chhattisgarh government to maintain the current ownership structure of the mill.
The sources cited a statement by India’s home affairs minister Amit Shah who, while addressing a political rally in the state on behalf of his political party, said that the steel mill would not be privatized.
A state-level election in Chhattisgarh is scheduled later this year and the issue of the privatization of the steel mill is a major political issue between the various parties in the electoral fray.