NMDC is likely to spend Rs 2,300 crore to increase iron ore production from its Bailadila mines in Chhattisgarh.

The state-owned miner wants to augment the iron ore production capacity of Bailadila mines by about nine million tonne per annum.

The proposal has already been submitted to the Ministry of Environment and Forests (MoEF) for enhancement of production of iron ore from Deposit No. 4. The estimated capital cost of the project is Rs 1,899.74 crore.

Another proposal is to expand the capacity of Deposit No. 10 from 4.2 million tonne to six million tonne with an investment outlay of Rs 385 crore.

The Bailadila mines will cater to the iron ore requirement of the upcoming three million tonne integrated steel plant being set up by NMDC at Bastar and also other steel industries in Chhattisgarh.

The Bailadila iron ore range is estimated to contain 1,200 million tonne of high grade iron ore distributed in 14 deposits.

NMDC is presently producing about 20 million tonne of iron ore from its Bailadila sector mines and 10 million tonne from Donimalai sector mines in Karnataka.

NMDC has set a target of achieving 50 million tonne production of iron ore by 2016-17. The PSU produced 30.2 tonne during 2013-14 against 27.18 tonne in 2012-13.

It also expects its three million tonne per annum capacity Nagarnar steel plant in Chhattisgarh to be commissioned by 2015-16.