Prakash Priyadarshi
The Core Group of Secretaries, headed by Cabinet secretary Rajiv Gauba, may take a final call on the proposed demerger and disinvestment plan of NMDC's Nagarnar steel plant located in Chhattisgarh.
Sources that spoke to CNBC Awaaz confirmed that the Cabinet Secretary-led panel will meet on November 28 to deliberate on the issue. Sources also claimed that the group will aim to address the apprehensions shown by the Steel Ministry on the proposed demerger and stake sale of National Mineral Development Corporation's (NMDC) steel Plant.
The Steel Ministry has shown its displeasure over the timing of the proposed disinvestment of the Nagarnar Steel plant as it believes the exercise will hamper the progress of the plant's commissioning.
In a letter referred to the Department of Disinvestment and Public Asset Management (DIPAM), the Steel Ministry said that any disinvestment exercise at this stage will delay the completion work of the plant, which is planned to be commissioned by June 2020. NMDC has invested a sum of Rs 15,000-odd crore and will invest an additional Rs 7,200 crore over the next seven months.
However, the Finance Ministry has prepared an extensive proposal for the Nagarnar plant as it is part of the government's disinvestment exercise. Sources aware of the matter has also informed that the proposed meeting on November 22 will consider the government's stake sale in Rashtriya Ispat Nigam limited (RINL), which is also facing hurdles.
(Prakash Priyadarshi is Principal Correspondent at CNBC Awaaz)
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