State-owned miner NMDC is planning to invest around Rs 2,400 crore to lay a pipeline between its Chhattisgarh plant and Visakhapatnam in Andhra Pradesh.
Speaking to Business Standard, N Srinivasan, joint general manager – finance, NMDC, said the proposed pipeline would transport iron ore from Bailadila mine in Chhattisgarh to Vizag. The distance between Bailadila and Vizag is around 290 km.
The company is preparing a detailed project report for this, said Srinivasan.
Meanwhile, a senior official from NMDC who requested anonymity said the company was planning to shift its iron ore export base from the ports in Tamil Nadu to Krishnapatnam in Nellore district of Andhra Pradesh, which is closer to company’s mines in Karnataka.
“The rail link to Krishnapatnam is expected to be completed in 18-24 months, after which we intend to export through Krishnapatnam port,” said the official.
It may be noted that NMDC is an equity investor in a special purpose vehicle (SPV) for construction of a new railway line to Krishnapatnam.
In 2009, exports accounted for 15 per cent of the total production. The company exports mainly to countries like China, Japan and South Korea. Exports to China stood at 97.8 million tonnes in 2008-09 as compared with 91.9 million tonnes, a year ago.
