NMDC, India’s biggest iron ore miner is planning to invest Rs 3,513 crore on its upcoming 3 million tonne per annum capacity steel plant at Nagarnar in Chhattisgarh. The company will be funding entire investment for the project from its internal resources.
The company has set aside a capital expenditure target of Rs 4,655 crore in the next fiscal and over 75% of the amount (Rs 3,513 crore) will be spend on the Chhattisgarh plant, which would mark NMDC's entry into steel manufacturing.
Work on the plant is on full flow and it is expected to commission on time (in 2014) as most of the packages, out of seven, have been awarded.
Initially, the plant will produce HR-coils (hot rolled coils) and the company is planning to create a separate marketing division for selling the steel products. Gradually, it will also move towards production of cold rolled and other steel products. The plant will get iron ore from company's existing mines at nearby Bailadila, while the coking coal is planned to be imported.
