Public sector mining company National Mineral Development Corporation (NMDC) is planning to set up a pig iron plant in Chhattisgarh. The proposed plant, of 1 million tonne capacity, is expected to see investments to the Rs 1,000 crore.
?We initially planned a sponge iron plant in state, but the Chhattisgarh government was keen on a pig-iron plant. At present, available technology for pig-iron plant is not very viable, thus we are looking for viable technology,? NMDC chairman and managing director Rana Som said.
In the meantime the company is setting up a sponge iron plant of similar capacity and would use it as an input provider for proposed pig iron plant, he added. The steel plant will also have a captive power plant. It is also planning to enter the field of prospecting, drilling, mapping, sampling in a big way. The company would write letters to state government of Orissa, Jharkhand, Chattisgarh and Karnataka to allow it to do these activities on companies own cost.
The company may also tie up with both domestic and international firm to take up these activities as it thinks proper prospecting, mapping, sampling and drilling would substantially increase country?s proven reserves of various minerals.
To meet the requirement of steel and iron sector, National Mineral Development Corporation (NMDC) plans to invest Rs 18,000 crore to double its production capacity to 50 million tonne (mt) in the next five years. It is also looking to acquire iron ore mines both within and outside the country.
NMDC along with Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) have proposed to set up a 4-mt steel plant in Chhattisgarh at an estimated cost of Rs 1,244 crore.
The draft feasibility report has already been prepared and the final DPR is under consideration. The PSUs are hopeful of completing the construction of proposed plant within 30 months from the date of starting construction.
Also, NMDC plans to set up two pellet plants of 1 mt each at Donimalai in Karnataka and Bailadila in Chhattisgarh at a total cost of Rs 700 crore. The plant would be constructed with 24 months from the date of commencement of construction.