NMDC Bastar plant work to start soon

The National Mineral Development Corporation (NMDC), country's biggest iron ore producer and exporter, would start the construction work of its proposed steel plant near Nagarnaar in Bastar district by the end of this month.

“The senior officials of the company came for a discussion two days ago and have assured that the construction work for the steel plant will start by the end of this month,” Chief Minister Dr Raman Singh told Business Standard. The company wants to start the plant with 3 million tonne per annum (mtpa) capacity.

“But we have asked to start it with 1 mtpa and later go for expansion so that project comes to the stream at the earliest,” Dr Singh added. The project, finalised in early 1990s, has been under the thick of the controversy after the company backed out to put up a steel plant and proposed to set up a sponge iron unit in Nagarnaar, about 20 km from the headquarters of Bastar in Jagdalpur, where the state government had acquired 403 hectares of land for the steel plant.

The company cited increase in the cost of Romelt technology as one of the reasons to put the steel plant proposal on hold.

However, the state government raised strong objection and asked the company to set up steel plant for which the land was acquired.

“There is no question of considering the proposal of sponge iron unit as the land was acquired in the name of steel plant and the company is bound to complete the project,” Dr Singh said.

The steel plant would add value to the mineral as the NMDC was exporting a major share to Japan and the state could not get the advantage of having world-class iron-ore deposit, he added.

Of the three fully mechanised mines of the NMDC, two are located in Bailadila area of Dantewada district.