IMG to discuss fast-tracking NMDC project with Chattisgarh govt

Development comes in the wake of Inter-Ministerial Group to monitor and coordinate major steel investments in the country

A high-level panel to address bottlenecks in mega projects in the steel sector may soon take up the matter to fast-track certain clearances to NMDC's Rs 15,525 crore Chattisgarh project with the state government.

The development comes in the wake of an Inter-Ministerial Group (IMG) to monitor and coordinate major steel investments in the country, reviewing the progress of the projects this month.

"We would take up the matter with the state government that certain clearances are granted at the earliest to the project and there are no law and order issues in the work site," a Steel Ministry official said.

The country's top iron ore miner NMDC has already approached Prime Minister's Project Monitoring Group, which was set up to fast track stalled large investment projects for expediting Rs 15,525 crore steel plant in Chhattisgarh.

The 3 million tonnes (MT) project is crucial for NMDC which plans to expand iron ore production capacity to 40 MT annually by 2017 from existing about 30 MT per annum.

The state-owned PSU through the project will diversify into the steel sector but a part of the project involving construction of 32 km long water pipeline, is stuck due to lack of forest clearance.

"The issue of the water pipeline was discussed in the IMG meeting and it has been decided to approach the state government for early clearance of forest diversion proposal for water pipeline for the plant," the official said.

The pipeline corridor falls in forest area involving 27.50 hectares of forest land and requires Forest clearance under Forest Conservation Act, 1980 for right of way (ROW) for laying the pipeline.

The project, involving Rs 1,000 crore investment, is an integral part of the steel plant as it will draw 53.69 million cubic metres of water from Saberi river to meet plant's needs.

As per the sources, any further delay in approval may lead to delay in commissioning the steel plant, planned for mid- 2015.

The official said the IMG also discussed the issue of delays in allotment of 250 acres additional land for pellet plant etc pending since March, 2011 besides ways for early completion of transmission lines and sub-stations for supply of power to plant site.