NMDC Ltd has started work on its proposed steel plant in Chhattisgarh. The plant would begin production of hot-rolled flat products from 2015, said MVR Sarma, chief project manager (steel), NMDC.
Initially, the plant would produce hot-rolled products and later some value-added products like cold-rolled, he added.
The miner is spending Rs 15,000 crore to set up the 3-million tonne capacity steel plant for which the Chhattisgarh government has allotted 2,000 acres. Of the total investment, to be met from internal accrual, about Rs 4,000 crore would be spent on import of machinery from overseas.
“This plant will get iron ore from NMDC’s Bailadilla mines, which are very close to the proposed site, and we will import the required coking coal from other countries through Visakhapatnam port,” he said.
NMDC is planning to set up a separate marketing division to sell steel products. Sarma was here to attend a two-day conference on iron and steel-making.