The Cabinet Committee on Economic Affairs (CCEA) has accorded ‘in-principle’ permission to NMDC ltd for considering ‘strategic disinvestment’ of its 3 MTPA steel plants coming up at Nagarnar in Bastar region of Chhattisgarh, the company informed BSE on Friday.
NMDC will also soon start constructing 1008 housing units in the phase-I part of the project for its staff at its upcoming permanent township at Dhanpunji near Nagarnar in Bastar district, officials informed.
It may also be recalled that NMDC has proposed to use its mine lease area at Deposit number 4 located at Bailadila range of hills at Bhansi near Bacheli in South Bastar’s Dantewada district in Chhattisgarh for meeting the raw material requirement 'exclusively' for its upcoming 3 MTPA Integrated Steel Plant at Nagarnar, officials informed.
The remaining iron ore quantity after meeting the requirement of integrated steel plant at Nagarnar from Deposit 4 will be sold to domestic customers in Chhattisgarh, they informed.
The Deposit - 4 iron ore mine will be developed as a ‘standalone project’ with an estimated investment of `1899.74 crores.
Notably, NMDC proposes for mining the Deposit number 4 iron ore mine with a production capacity of 7.0 MTPA in the mine lease area of 646.596 hectares.
Notably, NMDC's iron ore requirement for the steel plant would be 5 MTPA. The exploration work was done at Bailadila Deposit No. 4 by NMDC in the year back in 1972-74. The ore reserves were proved by detailed exploration activities.
The Deposit 4 has a production capacity of 7.0 MTPA and spread in a mining lease area of 646.596 hectares.
In addition to the mining lease area, 95.13 hectares forest land is identified for development of infrastructure such as downhill conveyor, screening plant, loading plant and approach road etc.
Further, 50 hectares of non-forest land is also required for installation of railway stock yard, administrative building, loading plant (part), tailing dam, STP and township etc.
The existing iron ore production from other Bailadila mines is catering to requirements of large steel plants and also to local sponge iron / pellet plants in Chhattisgarh.
Mining plan along with progressive mine closure plan has been approved by Indian Bureau of Mines (IBM), for production capacity of 7.0 MTPA vide their letter no: No 314(3)/2012-MCCM (CZ)/MP-19 dated July 26, 2013, officials informed.