Expecting better market conditions, NMDC has planned a capex of Rs 3,000 crore with a 20% growth in turnover for FY18. With the steel industry coming to a healthy position, NMDC has set a production target of 37 million tonne (mt) this year from the current level of 34 million tonne. Addressing the shareholders during the 59th AGM, N Baijendra Kumar, CMD, said, “NMDC achieved record iron ore production of 34 mt and sales of 35.6 mt during 2016-17, which was 19% and 24% higher year-on-year. The turnover at `8,830 crore was 37% higher than in 2015-16. Net worth of the company was at Rs 22,519 crore as on March 31, 2017.”
“We expect to spend Rs 3,000 crore towards capex including the expenditure on Nagarnar steel plant in Chhattisgarh, expecting a 20% growth in turnover during FY18,” he said. As part of its vision 2025, NMDC plans to increase its production capacity to 67 mt per annum by 2021-22. The strategy focuses on growth largely through brownfield expansion of existing mines. The company is pursuing allocation of new iron ore deposits both participation in auction and government dispensaiton route. He said development of a greenfield mine at Deposit 13 has also been planned in joint venture with Chhattisgarh Mineral Development Corporation, for which a mining lease has been executed.