NMDC restarts production from Telangana sponge iron unit

State-owned iron ore miner NMDC Tuesday announced resumption of operations at its sponge iron unit in Paloncha, Telangana.

"Sponge Iron Unit (SIU), Paloncha of NMDC has recommenced its operations today with lighting up of plant after a long gap of shutdown due to administrative reasons," the company said in a statement.

The plant has started with 50 per cent of its rated capacity due to the shutdown.

"However, the plant will be operated at 80 per cent capacity...to achieve breakeven of the expenditure and costs involved," it said adding that the existing capacity of the plant is to produce 100 tonne per day of good quality sponge.

The resumption of operations at Paloncha plant will add value to the steel market supported by NMDC, it said.