NMDC to spend Rs 10K cr on pipelines, pellet units for steel

State-owned NMDC Ltd will spend Rs 10,000 crore on setting up slurry pipelines and pellet plants, among other works, for its upcoming steel plant in Chhattisgarh.

The investment will be divided into two parts -- setting up slurry pipelines and pellet plants for Nagarnar steel plant and another slurry pipeline from Nagarnar to Visakhapatnam, according to a communication by the miner to stock exchanges.

The PSU will also set up a pellet plant in the port city.

While the projects in Chhattisgarh costs Rs 4,000 crore, the Vizag portion would cost Rs 6,000 crore, it state-run miner said.

"NMDC has initiated activities to develop 15 million tons per annum slurry pipeline system from Baladila to Vizag for transportation of iron ore fines in slurry form," it said.

The Chhattisgarh portion of the project includes setting up a slurry pipeline from Biladilla to Nagarnar along with ore processing plants at Biladilla and pellet plant at Nagarnar.

NMDC also said that the slurry pipeline system from Nagarnar to Vizag along with the pellet plant at Vizag will be setup in joint venture, in which NMDC and RINL will be prime partners and selection of other partners is in progress.

The miner is setting up a 3 million tonne per annum (mtpa) steel plant at Nagarnar in Chhattisgarh with an investment of Rs 15,525 crore.

The iron ore miner has created a wholly-owned subsidiary vesting iron and steel plant with the arm.