Strategic Merger: KIOCL and NMDC Set for Union

The government is exploring the merger of KIOCL and NMDC to counter KIOCL's losses. Despite KIOCL's significant pellet production capacity, state cooperation issues have hampered its performance. Union Steel Minister HD Kumaraswamy disclosed the merger consideration during a press conference announcing a revival package for Rashtriya Ispat Nigam Ltd.

The government is contemplating a merger between KIOCL and NMDC as a strategic move to mitigate financial losses faced by KIOCL. Union Steel Minister HD Kumaraswamy revealed this development during a press meet where he discussed the revival plans for Rashtriya Ispat Nigam Ltd worth Rs 11,440 crore.

KIOCL, a key player under the Ministry of Steel, operates a 3.5 million tonne per annum iron-oxide pellet plant alongside a pig iron blast furnace unit in Mangaluru, Karnataka. The situation has been affected by the lack of cooperation from the Karnataka state government.

NMDC, also operating under the Steel Ministry, plays a crucial role in fulfilling 20 percent of India's iron ore demand. The merger consideration aims to enhance operational efficiency and address the financial challenges faced by KIOCL.

(With inputs from agencies.)