The Union Government plans to merge Kudremukh Iron Ore Company Ltd (KIOCL)
with NMDC by way of a share-swap arrangement. Both NMDC and KIOCL will divest
stake to each other and as part of the arrangement, KIOCL will become a
subsidiary of NMDC.
NMDC is expected to have a 51 per cent stake in KIOCL, the Government will
retain 48 per cent and the remaining 1 per cent will stay with public.
This has come as a breath of fresh air to KIOCL which currently has no
captive iron ore mine to run its pelletisation and pig iron plants in Mangalore
and will benefit from the government's proposal to convert it into a subsidiary
of NMDC. As a result of the proposed merger, NMDC is likely to transfer one of
its iron ore mines at Donimalai in Bellary, Karnataka to KIOCL.