Union Steel Minister HD Kumaraswamy has said that the government is considering merging pellet maker KIOCL with iron ore major NMDC. The minister said that as KIOCL is in critical condition and has also reported losses, the government is considering merging it with NMDC.
He said it on the sidelines of a press meet called to announce a revival package of Rs 11,440 crore for Rashtriya Ispat Nigam Ltd (RINL).
NMDC, an entity under the Steel Ministry, caters to India’s 20 per cent of iron ore demand.
On the other hand, 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.
It is worth noting that speculation about a potential merger has been circulating since last year. In October 2024, NMDC had denied such reports, clarifying that no official discussions or formal communication regarding the merger had taken place at that time.
Also Read: NMDC denies media reports of possible merger with KIOCL
