Expedite 'vigorously' C'garh steel plant project: Par panel to NMDC

Concerned that NMDC's maiden steel venture, a 3 MT plant in Chhattisgarh, could not be built even after three-and-a-half years, a parliamentary panel has asked the PSU to"vigorously" expedite the project to ensure commissioning by October this year.

The country's top iron ore producer had earlier announced to commission its about Rs 18,000 crore integrated steel plant by May 2015.

"There has been a delay of approximately 41 months on the commissioning of 3 MTPA (million tonne per annum) iron and steel plant of NMDC at Nagaranar, Chhattisgarh, which was supposed to be commissioned in May, 2015 ... the committee desire that work on this project be expedited vigorously so that the project is commissioned by October, 2018," the Standing Committee on Coal and Steel said.

The 29-member panel, chaired by Rakesh Singh in the report tabled in Parliament last week said it was informed that various constraints like pending statutory clearances, flood in Bastar, delay in making barrages, controversy on right use of water pipeline, lack of skilled manpower, delay in a package due to non-completion of other linked activities, law and order etc have been major reasons for delay.

It said that the committee was assured that most of these hurdles have now been overcome and the project can be commissioned by October 2018.

The panel also expressed displeasure that "no new project of NMDC has been commissioned during the last 2 years" after commissioning of 7 MTPA Bailadilla Iron Ore Deposit project in Chhattisgarh, 7 MTPA Kumaraswamy iron ore project in Karnataka and 1.2 MTPA pellet plant at Donimalai in Karnataka in March 2015, August 2015 and June 2015 respectively.

Earlier this month NMDC said it has achieved a critical milestone in the commissioning of its steel plant at Nagarnar by starting a Rs 140-crore power sub-station at the upcoming facility, which is scheduled for completion in September.

"NMDC's upcoming steel plant at Nagarnar, Chhattisgarh took the first decisive step towards commissioning by starting the 220KV GIS (Gas Insulated Switch) Main Receiving Sub-station today," the company has said.

Of the steel plant's total power requirement of 296 MW, NMDC proposes to take 241 MW from the grid through CSPTCL while the balance will be generated in-house.