Indian state firms create IFSC subsidiaries in GIFT City to finance overseas critical mineral projects
NMDC Ltd and Steel Authority of India Ltd have set up new subsidiaries in GIFT City's International Financial Services Centre to support overseas mining ventures and streamline foreign-currency financing.
According to Ministry of Corporate Affairs records, NMDC Ltd and Steel Authority of India Ltd have each launched an IFSC-based subsidiary in GIFT City. NMDC Global IFSC Limited is described as a strategic investment and financing vehicle aimed at overseas projects involving critical and strategic minerals, including lithium, cobalt, nickel, copper, gold, coking coal and iron ore. SAIL Global IFSC Limited is set up primarily as a group treasury centre to manage cash, intra-group loans, currency and trade finance.
Advisors from EY India and Price Waterhouse & Co LLP note that the entities could enable dollar borrowing, lock-in exchange rates, centralise cash management and, pending regulatory approval, expand into commodity trading. The move reflects India's broader push to secure raw-material supplies and reduce exposure to spot freight and foreign-exchange volatility.
Why it matters
The subsidiaries give Indian PSUs a domestic platform to fund critical mineral imports and manage currency risk, bolstering supply security.
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