Paul Wurth, Danieli, Posco to submit bids for NMDC steel plant

Global firms Paul Wurth, Danieli and Posco E&C, among others, have been short-listed to submit bids for the supply of equipment to set up state-owned NMDC's proposed Rs 14,000 crore steel plant in Chhattisgarh.

"NMDC's screening committee has shortlisted global equipment and construction firms such as Paul Wurth, Danieli (and) Posco E&C to take part in the technical and price bid to supply equipment for installing the steel plant... It targets to start construction work by as early as October-November," a senior government official told PTI.

The country's largest iron ore producer has already announced the acquisition of 1,948 acres of land for setting up the 3-million tonnes per annum steel plant at a cost of about Rs 14,000 crore in the tribal-dominated state.

The company has decided to divide the construction work into nine turnkey packages and will invite separate bids for each contract.

"Out of nine packages, currently, the company is planning to invite bids for eight packages. Only these short-listed firms can take part in the bidding process," the official added.
    
The Navratna firm had announced its plans to diversify into steel-making in 2008 and had started the land acquisition process for the same in October, 2010.
    
"All the plans regarding the steel plant are on track. NMDC has acquired the required land in tribal areas in a record 10 months," the official said.
    
In the last fiscal, the company produced about 22 million tonnes of iron ore.
    
"The company is investing Rs 3,400 crore to augment its annual iron ore production to about 41 million tonnes in the next few years. The increase in output will also help in feeding the steel plant," the official added.
    
Iron ore is a vital steel-making input.
    
Before commencing construction work on the steel plant, the PSU is investing on setting up educational institutes, medical centres and training centres in the region to ready a local work force for the steel plant.

"An industrial training institute (ITI), as well as a residential school for the local students, both funded by NMDC, will be inaugurated by Union Steel Minister Virbhadra Singh in the presence of Chhattisgarh Chief Minister Raman Singh on August 17," the official added.