SIIL sees assured iron ore supply post merger with NMDC

May 26, 2008

May 26 (Steel Guru) – It is reported that the merger of Sponge Iron India Limited with National Mineral Development Corporation will ensure supply of desired quality and quantity of iron ore to SIIL’s plant in Andhra Pradesh.

Mr VK Uppal CMD of SIIL said that it has been facing acute raw material shortage for a couple of years as the private firms in Karnataka that sell iron ore demand 100% advance and without bills. He added that it is difficult for a public sector firm like SIIL to obtain the raw material under such conditions.

Mr Uppal said that the merger of the company with NMDC would ensure desired supply of the raw material to the company’s plant in Khammam district. He added that the merger would pave the way for implementation of the proposed sponge iron plant expansion at Paloncha by utilizing surplus land and manpower of SIIL and financial resources available with NMDC.

It may be noted that the union cabinet has approved the merger of the two PSUs under the ministry of steel in its meeting recently. The merger would be carried out within 6 months through acquisition of SIIL shares by NMDC in the public interest.

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