The public sector National Mineral Development Corporation (NMDC) is setting up a pig iron plant with a total project cost of about Rs 600 crore, inclusive of build-own-operate (BOO) packages, at Nagarnar in Chhattisgarh. L K Advani, the deputy prime minister, will lay the foundation stone for the plant tomorrow.
NMDC has taken up the project to make use of smiles that are generated at its Biladila iron ore mines with iron content of 58 to 60 per cent. Since these smiles are not suitable for conversion into hot metal through the existing technology, NMDC has decided to adopt the Romelt technology developed by Moscow Institute of Steel & Alloys (MISA), Russia. This technology was found viable and suitable for conversion of the smiles into hot metal, NMDC said in a release.
NMDC plans to produce 3 lakh tonnes of pig iron per annum in the first phase and 15 lakh tonnes per annum in the second phase by adding two more modules of 6 lakh tonnes each. The steam generated in the process will be used for generation of 50 MW and 250 MW power in the first and second phases, respectively.
NMDC has already acquired 403 hectares of land required for the project and hopes to commission the first phase within 24 months from the placement of order for main furnace.