The state-owned National Mineral Development Corporation (NDMC) would soon set up an investigation and exploration centre at Raipur with an initial investment of Rs 20 crore.
?The company will take up exploration activities irrespective of prospecting and mining leases,? NMDC chairman Rana Som told FE.
Also, the company would write to state governments of Orissa, Jharkhand, Chattisgarh and Karnataka to allow it to undertake these activities at its own cost.
?The company will increase the investment in these areas significantly depending on the response of the state governments,? he added.
The FE, on December 13, had reported that the company plans to enter the field of prospecting, drilling, mapping and sampling.
Besides, the company may also tie-up with domestic and international firms to take up these activities. The public sector company believes that proper prospecting, mapping, sampling and drilling would substantially increase the reserves of various minerals.
At present, less than 20% of country?s geographical area has been surveyed.
NMDC is the main source for providing raw materials to steel companies. The company plans to invest Rs 18,000 crore to double its production capacity to 50 million tons (MT) in next five years.
NMDC, along with Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd(RINL), has proposed to set up a 4-million-tonne steel plant in Chhattisgarh at an estimated cost of Rs 1,244 crore.
The final draft feasibility report is under consideration.