Govt likely to approve merger of NMDC and SIIL

The government is likely to consider tomorrow the merger of Sponge Iron India Limited with country's third most valued company National Mineral Development Corporation. The proposal of merger of SIIL with state-owned blue chip NMDC is slated to be considered by the union cabinet tomorrow, sources said. SIIL, manufacturer of sponge iron, has been facing acute raw material shortage for a couple of years. "The company has been facing acute shortage of iron ore during the year. This problem would be permanently solved once the company merges with NMDC," SIIL Chairman and Manging Director V K Uppal said in his message on the company's website. The merger of SIIL was recommended by the expert group constituted by Ministry of Steel under the chairmanship of former steel secretary B L Das.