State-owned mining major NMDC plans to nearly double its mining capacity to 67 metric tonnes per annum (MTPA), as part of its diversification and forward-integration plan, It will also be setting up steel plants.
NMDC's current mining capacity across three complexes in Karnataka and Chattisgarh is 35.57 MTPA. By 2021-22, it hopes to increase this to 67 MTPA through brownfield and greenfield expansion, say company sources.
The company has also signed MoUs with Mishra Dhatu Nigam Limited (MIDHANI) and Defence Metallurgical Research Laboratory (DMRL) to explore tungsten investment opportunities in India and abroad to cater Defence and Aerospace sector.
As far as steel manufacturing concerned, the new 3-MTPA plant at Chattisgarh is expected to roll the first batch of HR coil by March 2019. Till now, NMDC has spent nearly Rs 138.75 billion on the plant.
The company has also entered pellet-making with a 1.2-MTPA plant at Donimalai. Another 2-MTPA unit is in the process of being set up at Nagarnar, Chhattisgarh.
After acquiring land and water, and ensuring power allocation and iron ore linkage, the SPVs would rope in a strategic partner to develop and construct the steel plant.
The Jharkhand SPV has selected a site, while in Karnataka, NMDC has acquired 2,800 acres through Karnataka Industrial Area Development Board (KIADB).
“However, because of a change in the MMDR Act with reference to allocation of mineral block through auction system, the concerned state governments where SPVs are planned are reluctant to allocate mineral block directly to SPVs,” said in the annual report.