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NMDC eyes value-addition projects for Nagarnar steel plant

V Rishi Kumar Hyderabad | Updated on June 07, 2018 Published on June 07, 2018

Baijendra Kumar, Chairman and Managing Director, NMDC

Plans capex of ₹2,500 cr in FY19; to have 67 MT of capacity by 2022

Backed by a record performance in FY 2018, iron-ore mining major NMDC Ltd is looking at robust growth this year. The company plans to deploy a capital expenditure of about ₹2500 crore this fiscal, up 25 per cent over the ₹2,000 crore deployed in FY 2018.

As the company plans to up mining capacity from 45 MT to 67 MT in 2022, it is looking at value-addition projects playing a bigger role in its overall business plans.

NMDC has scripted a strategic management plan to address risk and opportunities. Bullish on its growth, expansion and diversification projects, N Baijendra Kumar, Chairman and Managing Director of NMDC, said: “Our value-addition projects will play an important role in the NMDC growth story. In our Diamond Jubilee year, we recorded the best-ever performance since inception. We are looking at an exciting phase ahead both in the near and long term.”

In an exclusive interaction with BusinessLine, Kumar said: “NMDC’s value-added projects, including the ₹15,525-crore Nagarnar Steel Plant in Chhattisgarh, and the pellet plant at Donimalai in Karnataka, will play an important role in the company’s business plans. The Nagarnar plant, wherein we have already invested ₹13,000 crore is set to get commissioned later in the third quarter of the calendar year.”

Progress in phases

NMDC plans to increase its capex by about 25 per cent to ₹2,500 crore this fiscal year in various ongoing projects.

“There are constraints in terms of evacuation of iron ore produced from mines. The last year’s strong performance was in spite of two months’ disruption in supply link. We are in the process of developing a ₹3000-crore 15 MT slurry pipeline from Kirandul-Nagarnar-Viskhapatnam, in phases,” he said.

‘Steel unit’

“The pipeline is expected to be commissioned by 2021. Various clearances have been secured. The land acquisition for the pipeline is underway. Tenders will be called for and awarded for development,” the CMD said.

“The 1.2 MT pellet plant at Donimalai set up, as a part of the diversification initiative, is in the process of stabilisation. Down the line, we may also look up to further increase the capacity or even consider a steel unit,” he said.

On the changes brought about in the mining sector, he said, “We have various options. These include tie-ups with State governments and their ventures, direct bidding and even potential joint ventures.”

Referring to exports, the CMD said: “The company focus has been on domestic sales and will continue to be on serving the local market, which is expected to grow. Last year, about 2.6 MT was exported to Japan and Korea.”

NMDC was recently awarded the prestigious S&P Platts award for corporate social responsibility.

“Being one of the most successful public undertakings and a Navaratna, my focus is now to ensure employees have best work culture and to boost performance,” said Kumar.

During the ongoing Diamond Jubilee celebrations, there is also a focus on capacity building.

Published on June 07, 2018
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