Biz Desk / New Delhi
Union Minister for Steel Minister HD Kumaraswamy today confirmed that the government is considering merging KIOCL with NMDC, citing KIOCL’s financial struggles. The decision is part of a wider revival plan for the Indian steel sector.
Union Steel Minister HD Kumaraswamy said that KIOCL is in critical condition.
“The process is on to consider merging KIOCL and NMDC. KIOCL has also reported losses,” he said on the sidelines of a press meet here to announce a revival package of Rs 11,440 crore for Rashtriya Ispat Nigam Ltd (RINL).
The minister said the situation has occurred due to non-cooperation of the state (Karnataka) government.
KIOCL Ltd, under the Ministry of Steel, operates a 3.5 million tonne per annum (MTPA) iron-oxide pellet plant and a blast furnace unit to manufacture 2.16 lakh tonne per annum pig iron at Mangaluru, Karnataka.
NMDC is also an entity operating under the Steel Ministry. It caters to India’s 20 per cent of iron ore demand.