The government wants to consolidate public sector units in the steel industry. Under this, the Steel Ministry has proposed the merger of NMDC Limited and KIOCL Limited. A government source said that this proposal was submitted to the Finance Ministry about a month ago. A source said on January 6, ‘The proposal for merger of NMDC and KIOCL has been sent by the Steel Ministry to the Department of Public Enterprises (DPE), Finance Ministry.’ It is clear that the government wants the merger of both the units and for this it is taking necessary approvals from various ministries and regulatory bodies.
KIOCL was earlier known as Kudremukh Iron Ore Company Limited and is a Mini-Ratna Public Sector Unit under the administrative control of the Ministry of Steel. This company was established in 1976. In the field of iron ore mining and pellet production, KIOCL is a significant player. NMDC is a Navratna company and India’s largest iron ore producing company. NMDC had achieved a turnover of Rs 21,294 crore in the financial year 2023-24.
The merger process will require approval from multiple ministries. This also includes the approval of the Department of Public Enterprises (DPE) under the Finance Ministry. Apart from this, regulatory approval will also be required for this. This proposal is awaiting approval from the Finance Ministry.