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NMDC plans SPVs with state govts for setting up steel factories

Friday, 09 Aug 2019
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The Public sector mining company NMDC will have special purpose vehicles (SPVs) with the governments of Jharkhand and Karnataka to set up steel factories. The company’s SPV in Jharkhand has already selected the site and applied for allocation of land, water and power.

In Karnataka, NMDC has acquired around 2,800 acre. NMDC has also sought iron ore allocation in Jharkhand and Karnataka from the Union government. After land acquisition, water and power allocation and iron ore linkage, the SPV will invite a strategic partner to develop and construct the steel plant.

As part of a value addition project, NMDC is already setting up a pelletisation unit and an integrated steel plant of three million tpa in Chhattisgarh. This plant is close to completion.

On the mining side, to meet the Steel sector demand, NMDC plans to augment its production capacity of iron ore to 67 million tpa, from 43 million tpa now. A joint venture (JV) company with Chhattisgarh Mineral Development Corporation (CMDC) is also expected to start production in near future. The JV is planning to develop 15 million tpa in mines.

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