NMDC ltd — India’s largest iron ore producer and exporter in the public sector — will be constructing 36 units of Type-III quarters for doctors at its Bacheli township in Bastar region of Chhattisgarh.
The company is also in the process of constructing massive residential complexes at Dhanpunji and Chokawad villages for its upcoming three million tonnes per annum (MTPA) steel plant being established at Nagarnar in Bastar district, officials stated.
It has also already commenced the process of building other necessary infrastructure for its proposed steel plant.
The company had recently commenced construction of new block station, staff quarters, associated P-way and S&T works in connection with the construction of Railway siding. The total cost of the infrastructure for which the tender had been floated is `56.06 crore which is to be completed in a span of one year.
Notably, the company also recently commissioned its new iron ore mine in Chhattisgarh’s extreme insurgency-hit Dantewada district of Bastar.
This apart, the mine- Bailadila Iron Ore Deposit 11B, is located in Bailadila hills where the NMDC has several massive high-quality iron ore mines spread out in Bacheli and Kirandul areas.
The NMDC has developed the mine having iron ore production capacity of seven Million Tonnes Per Annum (MTPA) with an investment of more than `600 crore.
With the commissioning of 11B Project Mine, NMDC has ramped up production capacity from present level of 25 MTPA to 32 MTPA from Chhattisgarh’s Bailadila Sector.
The company is once again set to provide high grade Indian iron ore from its Chhattisgarh mines to Japanese and South Korean Steel Mills.
Iron-ore exports to Japan and South Korea under the long Term Agreement (lTA) are largely made in the country from NMDC ltd’s mines in Bailadila, Chhattisgarh.
The export of iron-ore is presently under Open General license (OGl). High-grade iron-ore (+64 per cent Fe) is canalised through MMTC ltd. Exports are determined by availability and international market situations.
The Union Cabinet, chaired by Prime Minister Narendra Modi recently gave its approval to renew long Term Agreement with Japanese and South Korean Steel Mills for supply of high grade Indian iron ore, during the three year period from April 2015 to March 2018, officials stated.
The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year, and will be supplied primarily from NMDC mines.
The contract will be executed by the Metals and Minerals Trading Corporation of India limited (MMTC) under the Department of Commerce.
The iron ore of higher grade have been supplied by India to Japan and South Korea under long-term Agreements during the last four to five decades. These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, officials stated.
The agreement will also help utilise surplus production of iron ore currently available in India.
The Central Government has long-Term Agreements (lTAs) for supply of high grade iron-ore to Japan and South Korea through MMTC ltd.
Nearly 23.24 per cent of the country’s iron ore reserve are situated in Chhattisgarh, and a major part of this reserve is found in Bailadila (Dantewada) and Rowghat.
This is why there has been a prolonged demand, for more than 50 years, to establish a steel plant in this region of Chhattisgarh.
Keeping in view this long-pending demand, NMDC ltd has already started construction of Steel Plant in Nagarnar area of Jagdalpur, which is underway at an expedited pace, officials stated.