The Board of NMDC Limited (BSE:526371) agreed to spin-off NMDC Iron & Steel Plant in Nagarnar on August 27, 2020. The transaction has been on approved by the Board of NMDC Limited on August 27, 2020. Shareholders of NMDC Limited will receive one equity share of NMDC steel for every one share held in NMDC Limited. NMDC Iron & Steel Plant will be demerged in a separate entity to be called as NMDC Steel Limited. As of October 13, 2022, The Board has announced October 28, 2022 as Record Date. Several regulatory approvals including that of SEBI are required to complete the transaction. On June 28, 2022, shareholders of NMDC Limited and creditors has approved the transaction. As of October 14, 2020, The Cabinet Committee on Economic Affairs (CCEA) has given its in-principle approval to the demerger of Nagarnar Steel Plant (NSP) from National Minerals Development Corporation (NMDC) Ltd. On July 13, 2021, the transaction was approved by the board of directors of NMDC Limited and NMDC steel. The transaction is still subject to necessary statutory and regulatory approvals including the approval of the Securities and Exchange Board of India ("SESI"), Stock Exchanges, Ministry of Corporate Affairs, Government of India and respective shareholders and creditors, if any, of each of the companies involved in the Scheme. As on March 22, 2022, the Ministry of Steel approved the scheme. As per disclosure of May 6, 2022, NMDC Limited has sent a notice of the meeting of equity shareholders of NMDC Limited to be held on June 7, 2022 for the transaction. The transaction is scheduled to be completed by August to September 2021. As of August 23, 2021, transaction is expected to close early Q4 in financial year 2022. As on February 17, 2022, Necessary clearances from SEBI and the stock exchanges have already been received. NMDC Ltd is expecting to complete the demerger process by late March or around April-June. If the Ministry of Corporate Affairs (MCA) accedes to the request, then the demerger process could be completed by March-end or end-of-April. As of October 11, 2022, Ministry of Corporate Affairs order approved the transaction.

NMDC Limited (BSE:526371) completed the spin-off of NMDC Steel Limited (NSEI:NSLNISP) on February 20, 2023. NMDC Steel Limited was listed at Bombay Stock Exchange