Business Daily from THE HINDU group of publications
Tuesday, Apr 10, 2007
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Business Daily from THE HINDU group of publications Tuesday, Apr 10, 2007 ePaper |
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Diversification NMDC plans integrated steel plant, foray into coal mining, power Our Bureau
Hyderabad April 9 The cash-rich National Mineral Development Corporation (NMDC) has decided to diversify into coal mining, power and renewables and set up a greenfield integrated steel plant, with overall investments beyond Rs 10,000 crore. Announcing the new plans, the Chairman and Managing Director, Mr B. Ramesh Kumar, said the 2-million-tonne steel plant would come up in Chhattisgarh, where a location is being finalised. NMDC is scouting for joint venture partners and is in talks with SAIL, RINL and others to put up the Rs 3,500-crore plant. The pre-feasibility studies have been completed and a consultant is being appointed to identify the location and do the project-costing, he told newspersons here.In coal, NMDC will be part of the mega venture contemplated by the Centre to acquire overseas mines with a huge corpus fund. SAIL, Coal India, NTPC and RINL are other PSU members in the consortia. They will bid for mines in Indonesia and Australia. Independently also, NMDC has applied for coal blocks for lease, on license and is ready for acquisition within the country, Mr Ramesh Kumar said. On the power front, the company is setting up a 10-MW power plant to power its projects. In renewables, it proposes to set up windmills in Karnataka. The initiative would see an investment of Rs 110 crore. NMDC is also completing the acquisition of Sponge Iron Ltd in the next 4-6 months; setting up a fresh unit of 1 lakh tonnes at Nagarnar with an investment of Rs 90 crore, and a pelletisation unit at Bailadila and Donimalai with Rs 300 crore. In iron ore mining, the 11B Bailadila mine has seen activity starting from January and will get Rs 600 crore fund infusion. Similarly, in Karnataka's Kumaraswamy deposits, about Rs 296- crore investment is being contemplated. Responding to questions on the impact of the Rs 300-per-tonne duty on exports, Mr Ramesh Kumar said it could translate into a drop by Rs 101 crore in profitability at current exports. Exports have fallen by 50 per cent during the year from 6.04 million tonnes in 2005-06. In fiscal 2007-08, it would about 3.5 million tonnes.
Financial performance
NMDC closed the financial year 2006-07 with a profit before tax of approximately Rs 3,400 crore as against Rs 2,770 crorethe previous year. The company's turnover during the year was Rs 4,150 crore (Rs 3,711 crore), according to Mr Ramesh Kumar.The company has paid two interim dividends totalling 267 per cent. Other record performances of the company are total excavation of 36.71 million tonnes (as against the previous year's 31.45 million tonnes), ROM (Run of Mine) production of 27.73 mt (24.50 mt), production of lump plus fines of 27.10 mt (23 mt), iron ore sales of 25.60 mt (24.85 mt).
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