State-run miner NMDC and steel maharatna SAIL has recently joined hands and signed a joint venture for sale and supply of iron ore.
Both the companies have incorporated a subsidiary company named “NMDC-SAIL Limited” in order to develop, explore the sale or supply of iron ore from the allocated mineral resources in Chhattisgarh.
For NMDC-SAIL Limited, NMDC will have 51% of shareholding while SAIL has remaining 49% of the shareholding.
SteelMint in talk with NMDC officials heard that most of the officials are not sure how this JV will benefit iron ore sales and supply in Chhattisgarh and its further information is still awaited.
Indian Railways signs MoU with NMDC & SAIL for supply of iron ore
Alongside, Indian Railway Ministry will soon sign an agreement in the next 10-15 days with NMDC as well as SAIL and Government of Chhattisgarh for the supply of iron ore to steel-producing units .
The proposed (MoU) envisages the construction of a 140-km-long railway line between Rowghat and Jagdalpur in Chhattisgarh at an estimated project cost of Rs.2,000 crore.
The MoU comprises of a joint venture with NMDC and SAIL together who will contribute 64% of the equity, railway’s subsidiary IRCON will bring in 26% equity and the state government 10%.
~ Sourced
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