The state-run firm NMDC is well on its course to establish its second unit in the state of Karnataka by investing a whopping amount of $3.5-$3.9 billion. The company has already been allotted a $2500-acre of land by the state Government and has additionally acquires water connectivity for its second plant.

This plant in Karnataka will be company's second plane following the proposed fir unit in Chhattisgarh state with a capacity of 3 million tonne expected to be operational by the year 2014.

While the company plans to arrange its funding for the second unit in a mix of debt and equity, the company will also be selling almost 8% of its stake in NMDC expecting to raise around $3 billion.

The stake-sale deal will take down the company's stake to 90% which is today standing at 98%. The stake sale will open on the March of 10th to the March of 12th operating under the strategy of the government to offload its stake in 60 state-owned units. The plan is to raise funds by not pressuring the already wide fiscal deficit.