The National Mineral Development Corporation (NMDC) will commence work on its Rs 15,500 crore steel plant with a capacity of three million tonnes per annum, to come up at Jagdalpur in Chhatisgarh by September this year, NMDC Chairman and Managing Director Rana Som said today.
Talking to newsmen here at the announcement of NMDC Follow on Public Offer, Mr Som said that the investment was part of Rs 26,500 crore investment NMDC would be making over the next five years. NMDC was already sitting pretty with a cash balance of Rs 13,000 crore and would be adding additional Rs 3000 crore every year and hence most of the funding for future investments would be through internal generation, he added.
He said the company was also planning Rs 1500 crore to set up two pellatisation plants besides Rs 2500 crore for a dedicated iron ore pipeline with a capacity of ten million tonnes to Vishakapatnam.
He said that the companyplanned to take up its iron ore mining to 50 million tonnes by 2014-15 from the present level of 30 million tonnes per year.
He said that with nearly 92 per cent of the production sold on long term basis, the company was expected to get better pricing for its ores from next fiscal as the long term contracts were to be renegotiated after March 31. Nearly 85 per cent of the production was consumed domestically and balance 15 per cent exported mostly to Korea and Japan.
Jharkhand
