NMDC steel to commission Chhattisgarh plant by June, targets 200,000-300,000 tonnes production in FY23

NMDC Steel (NSL) will commission its steel plant in Nagarnar by the end of June, a senior company official told ET on Wednesday. Located in Chhattisgarh’s Bastar district, the plant was originally expected to be commissioned by March 31, 2023.

“The company is targeting an initial production of anywhere between 200,000-300,000 tonnes in the current financial year,” DK Mohanty, director (production) at National Mining Development Corporation (NMDC), said. “The ramp-up in production will take time, and we will eventually reach full capacity. ”
NMDC Steel was recently demerged from NMDC and listed separately in the bourses.

The company has already commissioned the coke oven, sinker plant and the blast furnace at the plant and will be sourcing iron ore from NMDC, while coking coal will be procured from Australian mining major BHP. The government of India holds a 60. 79% stake in the company and, according to sources, is looking to sell 50. 79% in the company. The steel plant will produce 2. 9 mt of HR coils, sheets and plates per year. The HR plates produced in the plant will be used in the manufacturingof LPG cylinders, API grade pipes, bridges, steel structures, ships, large diameter pipes, storage tanks, boilers, railway wagons, automobiles and pressure vessels.

Several large steelmakers have shown interest in its assets and are expected to place financial bids in the coming months. India, which is currently the second-largest producer of steel in the world, aims to produce about 300 million tonnes of steel per year by 2030, which is more than double of the 120 million tonnes of steel that it currently produces. In line with the government’s vision, most of the country's steel producers too are expanding their production capacities through a combination of organic and inorganic routes.

NSL has signed a 10-year agreement with NMDC for procuring high-grade iron ore (lumps and fines) with an average Fe content of 65%, which is valid till March 31, 2032.