Nagarnar Steel Plant

NMDC Ltd., as part of its expansion, value addition and forward integration programme is setting up a 3 MTPA capacity greenfield Integrated Steel Plant in Nagarnar, located 16 km from Jagdalpur in Chhattisgarh state with an estimated outlay of Rs 20000 crore.

The foundation stone for the project was laid on 3 September 2008. The land for the plant has already been acquired as of August 2010 and, as of December 2013, 16 major packages of the steel plant have already been awarded at a cost of around Rs.14,000 crore.

The project is based on HiSmelt technology and NMDC expects to commission the plant in three years once construction commences, as against the six years required in conventional plants.

NMDC is planning to set up 15 MTPA pipe line for evacuation of iron ore from Bailadila Sector to Visakhapatnam at Nagarnar to cater to the iron ore needs of the proposed steel plant. The company is expecting commercial production of its 3 MTPA capacity proposed steel plant in Chhattisgarh to commence by the middle of 2017. The plant is expected to be ready by December 2016 and trial of same will start by December 2016.The Union Steel & Mines Ministry has plans of doubling installed capacity of NMDC Ltd’s proposed 3 MTPA integrated steel plant coming up at Nagarnar in Bastar district in Chhattisgarh in due course once the plant is commissioned.

In order to increase the domestic capacity of steel production, a concept of Special Purpose Vehicle (SPV) has been introduced, officials stated. Two MoUs have already been signed by the states of Chhattisgarh and Jharkhand for setting up Greenfield steel plants with initial capacity of 3 million tonnes per annum (MTPA) each, to be later enhanced to 6 MTPA. More than Rs 70,000 crore will be invested for setting up of these steel plants. Notably, India was the only country among the major steel producing nations of the world which recorded a positive trend in steel production and consumption in 2015, officials stated.The first 11 months of 2015, steel production vis a vis 2014, India showed a growth of 2.8%, and world steel production registered decrease of 2.8%. India’s steel production capacity has increased by 6% in 2015 and consumption has increased by around 5%.

Notably, the work for setting up 'power plant distribution system' for NMDC's proposed 3 MTPA steel plant of the company has also started gathering pace at Nagarnar.The work for High and Low Tension Power and control cable laying and termination besides other identified works would also soon commence at the site, officials stated.The company has also commenced the process of setting up 2 MTPA Pellet Plant at Nagarnar in Bastar division of Chhattisgarh.The Site levelling works for the Pellet Plant as Nagarnar will soon be taken up, officials informed.Notably, a marathon ‘Slurry Pipeline Transportation System’ has been proposed for transportation of Pellet Feed Concentrate from Bailadila to Vizag via Jagdalpur along National and State Highways with a provision of partial off-take at NMDC Ltd’s proposed steel plant coming up at Nagarnar.

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