ARSS Infrastructure Projects ltd has bagged Rs 40.42 crore work order from NMDC ltd for developing ‘Plant Road Network, Phase II’ at the latter’s 3.0 MTPA Integrated Steel Plant coming up at Nagarnar in Bastar district of Chattishgarh.
This was informed by ARSS Infrastructure Projects ltd in its filing to the Bombay Stock Exchange (BSE).
Notably, 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.
The concentrate is intended for making pellets required for feeding to NMDC's Steel Plant at Nagarnar, officials stated.
For part of this project, investment proposals involving 2 MTPA Ore Processing Plant at Bacheli, 15 MTPA Slurry Pipeline system from Bacheli to Nagarnar and 2 MTPA Pellet Plant at Nagarnar has been approved by the NMDC Board of Directors, they stated.
Other pre-project activities such as detailed route survey, Environmental clearance, Forest clearance crossing permission from Railways and National Highway Authorities, MoU with Chhattisgarh Government for sanction of utilities (Water and Electrical power) have also been taken up and are in progress, officials stated.
It may be recalled that NMDC has already commenced the process of building necessary infrastructure for its proposed 3.0 MTPA steel plant coming up at Nagarnar.
The company would also soon install Automatic Fire Detection & Suppression System (AFDSS) in Conveyor belts at its Bailadila Iron Ore Mine (BIOM) in Bacheli Complex and Kirandul Complex.
The AFDSS would provide great help in protecting NMDC conveyor belt assets from fire hazards, officials stated.
It may be recalled that the company is also mulling over plans to augment the production capacity of its Kirandul Complex in Bastar region in Chhattisgarh with the construction of 12.0 MTPA ‘Screening Plant with loading facilities.
The plant would cater to both Deposit 11-B and 14 of Kirandul Complex, officials stated.
The estimated capital expenditure of the project is Rs 951 crores. TATA Consulting Engineers (TCE) is appointed as the EPCM consultant. The entire project has been planned to be executed in seven packages.
On the other hand, it may be recalled that NMDC has offered the contract of project monitoring services at its upcoming 3 MTPA steel plant at Nagarnar to public sector MECON ltd.
Moreover, for expeditious execution and commissioning of the Steel Plant, the nine Major Technological packages in respect of various production units viz. Sinter Plant, Blast Furnace Complex, Raw Material Handling System, Coke Oven Plant, By Product Plant, Steel Melting Shop, Thin Slab Caster & Hot Strip Mill, lime & Dolo Plant and Oxygen Plant have been awarded on turnkey basis, officials stated.