NMDC terminates contract with BHEL for delay in Rs 1,395 cr project

The Nagarnar steel plan was conceived by the NMDC in 2009-10 and the contract to build raw material handling system was awarded to BHEL on August 1, 2011

The National Mineral Development Corporation (NMDC) has invoked termination clause against Bharat Heavy Electricals Limited (BHEL) for failing to complete a contract awarded for its Nagarnar steel project in Chhattisgarh’s Bastar district.

The state-run miner is setting up a 3 million tonne per annum (mtpa) greenfield integrated steel plant in Nagarnar -- about 16 kms from Bastar’s divisional headquarters at Jagdalpur. The project is part of NMDC’s diversification, value addition and forward integration programme.

The company plans to feed raw material to the plant from its iron-ore complexes located in Bastar division. NMDC manages two fully mechanised mines with a