Tomar asks NMDC to raise output to meet 75 MT target by 2020

He asked the PSU to focus on increasing iron ore production

Country's top iron ore miner NMDC needs to substantially enhance production to achieve 75 million tonnes annual output target by March 2020, Steel and Mines Minister Narendra Singh Tomar has said.

"To achieve the target of producing 75 million tonnes per annum (MTPA) iron ore by 2019-20, there needs to be a visible incremental increase in production in consecutive years. NMDC needs to have a strategic vision and plan for the same," Tomar said as per an official statement issued here today.

Tomar who had visited NMDC headquarters in Hyderabad to review its performance asked the PSU to focus on increasing iron ore production.

"This will have the twin benefit of keeping prices in check and ensuring equitable supply of raw material to big and small producers. As a responsible PSU mining company, it is the responsibility of NMDC to ensure that there is no imbalance on these counts," he said.

Mining as an industry has a negative perception in the minds of public, which needs to be corrected by sustained efforts, Tomar added.

Stressing that the "company also needs to bring more parity in its physical and financial performance" Tomar advised NMDC to get a strategic plan prepared for long-term vision.

He asked the PSU to check delays in execution and commissioning of the ongoing projects at the earliest.

"Nagarnar Steel Plant, Kumarswamy Mechanised Mines, Deposit 11-b and pellet plant projects must be put on fast track to be completed in time. Performance in respect of financial parameters like gross operating margin, PAT, per employee profit etc. Has scope for improvement," Tomar said.

Earlier CMD, NMDC N Kothari welcomed the Minister and stated that this is first visit of a Steel Minister to NMDC Head office in last few decades.

Kothari apprised the Minister on progress on SPV front in Jharkhand, MOU for which is likely to be signed next month.

He assured the Minister that hot trials of the Nagarnar Steel Plant would commence by December, 2016.

Senior officials of Ministry of Steel and NMDC were present during this meeting.

The iron ore production of the company during 2014-15 touched a record at 30.44 MT as against 30.02 MT in 2013-14.

NMDC has planned a capex of Rs 3,500 crore for 2015-16 fiscal and expects iron ore prices to firm up.

The firm plans to enhance production to a level of 35 MT in the current financial year.

It is also planning to raise its capacity to 100 MT by 2024-2025.