State-run National Mineral Development Corporation (NMDC) today said it plans to set up its second steel plant in Chhattisgarh, which will have a capacity of 2 million tonnes per annum (MTPA).
The country's largest public sector iron ore-miner plans to set up the integrated steel plant in a joint venture (JV) at an investment of around Rs 10,000 crore.
"We will set up our second steel plant in Chhattisgarh with a capacity of two million tonnes per annum (MTPA). We will announce the JV partner by the end of this fiscal," NMDC Chairman and Managing Director Rana Som told reporters here.
However, Som, did not reveal the exact location and timeframe for construction of the steel plant.
NMDC plans to start production from its first Chhattisgarh plant -- a 3-MTPA integrated steel unit in Bastar district -- by early 2014, at an investment of Rs 15,525 crore.
"We have already started construction work at the Bastar plant and hope to complete construction by December, 2013. We will start production by early 2014," Som said, adding that the land acquisition process was concluded in a record 10 months.
Also Read
The NMDC Chairman said the company has also inked a pact with Russia's Severstal for supply of coking coal to their proposed joint venture plant in Karnataka.
"We have inked a Memorandum of Understanding (MoU) with Russia's Severstal for supplying coking coal to our Karnataka plant. The Russian entity will provide it at a discount price compared to the spot market. We are likely to sign an MoU with Severstal for our second plant in Chhattisgarh as well," he said.
However, Som did not reveal how much discount Severstal would give.
NMDC inked the pact with Severstal for the 5-million tonnes per annum joint venture steel plant in Karnataka last year.
"The plant will have an initial capacity of 2 MTPA, which is expandable to 5 MTPA," he said. The investment here is estimated at Rs 25,000 crore.
Severstal will share its latest steel-making technology with NMDC for the venture, which will produce auto and electrical-grade steel.
At present, the Navratna firm produces about 30 MTPA of iron ore from three fully mechanised mines in Chhattisgarh and Karnataka.