GIVING a boost to Narendra Modi's
ambitious Make in India programme, state-owned companies SAIL and
NMDC have joined hands to set up a 6 million tonne greenfield steel
plant at Dilmili in Bastar district of Chhattisgarh. The project is...
likely to cost around Rs 25,000 crore.
SAIL and iron ore miner NMDC Limited
will sign a MoU this month to jointly pool in funds needed for the
project.
Union steel minister Narendra Singh
Tomar had spoken to Chhattisgarh chief minister Raman Singh late last
month for facilitating acquisition of land and ensuring water and
power linkages for the mega project.
The Dilmili area is close to Nagarnar
also in the same district where NMDC is constructing a 3 MT steel
plant.
SAIL’s board had in December last
gave its nod for the special purpose vehicle (SPV) — Chhattisgarh
Mega Steel Limited and the state-run steel maker and NMDC will ink an
MoU for executing the project.
While these two firms would have the
majority stake in the SPV, the residual stake will be given to a
strategic partner who will be roped in through an Expression of
Interest.
A separate SPV would be floated with
Chhattisgarh State mining corporation (CMDC) for exploitation of iron
ore in Dantewada district of the state, a top steel ministry official
told a daily.
“The proposed project is in sync with
the government’s ‘Make In India’ programme. A target of
producing 300 million tonne of steel within 10 years has been set by
the government. Given the fact that the steel market is gradually
looking upwards and prices inching up, the ministry has vetted
setting up of this mega project,” the official was quoted as
saying.
Any project above 5 MT capacity should
be treated as a mega plant, the official added.
SAIL chairman CS Verma also confirmed that a MoU is to be signed. The construction for the project is likely to begin by
November after land is acquired and necessary clearances are secured
by the SPVs.
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