NMDC acquiring 3,000 acres of land in Karnataka for second steel plant
02 Sep 2014
National Mineral Development Corporation (NMDC) is in the process of acquiring 3,000 acres of land in Karnataka for setting up a second steel plant, with a capacity of 3 million tonnes per annum.
The state-run iron ore producer plans to invest around Rs18,000 crore for setting up a second steel plant, with an annual capacity of 3 million tonnes, in Bellari, the iron ore belt in Karnataka.
''We are going ahead with the steel mill. The process of acquiring about 3,000 acres land for the proposed steel plant through Karnataka Industrial Areas Development Board (KIADB) is also under progress,'' a senior company official said.
The company has already deposited Rs158.68 crore with KIADB as the tentative cost of the land plus service charges payable to the state agency.
''We have engaged MECON as consultant for preparation of techno-economic feasibility report for the project,'' he added.
The company, he said, has also received approval from the state government for water and power required to the proposed steel plant.
The proposed investment for the Bellary steel plant would be around Rs18,000 crore, the official said, adding that NMDC might rope in a partner with expertise in steel-making for the project in future.
NMDC had, in 2010, entered into a memorandum of understanding (MoU) with Russia's Severstal to run the Karnataka steel mill as a joint venture. However, Severstal opted out of the joint venture over management control, as NMDC was not willing to part with majority stake in the plant.
NMDC is also investing Rs15,525 crore for setting up a 3 million tonnes per annum steel plant at Nagarnar in Chhattisgarh. The company said it has already invested a little over Rs4,300 crore for the plant.
''We are already in possession of about 2,120 acres of land for the steel plant,'' he said, adding that necessary statutory clearances have been obtained.
