Arcelor Mittal, the Tata group and the JSW group are leading the race to buy the government’s stake in the NMDC steel plant. NMDC has spent Rs 20,000 crore to set up the plant, which took off after several years of delay.

The latest news is that the Ruias of the Essar group also want to make an offer for the steel plant. The Ruias had to exit the Indian steel industry reluctantly after they failed to repay loans. Despite the Ruias’ efforts to stall the sale, the lenders sold their steel plant to ArcelorMittal. It would be interesting to see whether the Ruias manage to get a foothold in the Indian steel industry once again, even as ArcelorMittal, JSW and Tata are far, far ahead.

All the bidders are keen to take over the NMDC steel plant, which is located on 2,180 acres in Chhattisgarh. The plant has finally come up and will go on stream within a month. The company would like to manufacture hot-rolled coils ranging in thickness from 1 mm to 12 mm, with a provision to go up to 16 mm within a couple of years.

All the bidders are keen to acquire this plant as – interestingly — though the government has spent around Rs 20,000 crore, its total market capitalisation is around Rs 9,350 crore as the NMDC steel stock with a face value of Rs 10 is quoted around Rs 38.29. Besides, the new plant is ready and the successful bidder will get it after it goes on stream.