NMDC and Rashtriya Ispat Nigam Ltd will float an equal joint venture to set up a 450 km slurry pipeline to transport iron ore fines and a pellet plant at Vishakapatnam.
The two companies plan to invest a total of Rs 2200 crore in the joint venture project. The pipeline between NMDC’s Bailadila mines in Chattisgarh and Visakhapatnam will have a capacity to transport 10 million tonnes per annum (mtpa) and will entail a cost of Rs 1200 crore including the filtration plant. Another Rs 1,000 crore is being planned to invest in the 4 mtpa pellet plant.
Both entities signed a MoU to this effect on Thursday in presence of Steel Minister, Mr Beni Prasad Verma. The proposed pipeline will pass through states like Chattisgarh, Orissa and Andhra Pradesh.
“We have applied for the right of way in these states to set up the pipeline,” said Mr N.K.Nanda, acting chairman, NMDC.
The pellet plant will utilise 4 million tonne iron ore and the rest will be sold to third party customers including RINL. The pipeline project is likely to be commissioned in about 36 months.
The Steel Minister reviewed the performance of NMDC for 2011-12 in which the company has seen a 1 per cent decline in revenues at Rs 11269 crore, despite an increase in sales at 27.3 million tonnes. The company is likely to have reported a net profit of Rs 7265 crore for the year. NMDC will be announcing its fourth quarter and fiscal 2012 results on May 28.