NMDC to start coal production from Shahpur West block, MP by 2014

India's largest iron ore producer, NMDC, is planning to start coal production from the Shahpur West block in Madhya Pradesh by 2014. After getting Coal ministry’s approval to mine closure plan for the block, the company now has applied for environment and forest clearance.

Back in 2009, the coal ministry had allotted the company with two blocks - Shahpur East and Shahpur West in Shahdol district of Madhya Pradesh, following which MoU was signed between the company and Mineral Exploration Corporation (MECL) for conducting an exploration in both the blocks.

Having a captive source of coal for its steel plant would led NMDC, have an edge over its competitors, as this would led the company protect itself against price fluctuations, given the scarcity of raw materials.