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SAIL, NMDC To Set Up Ultra Mega Steel Plant in Chhattisgarh

SAIL and NMDC will set up a 3 million tonne per annum ultra mega steel plant in Chhattisgarh's Bastar region at an investment of Rs 18,000 crore. Two special purpose vehicles will be set up, with SAIL holding 74% equity in the project SPV and 26% for NMDC, while the mining SPV will have 49% for CMDC and 26% and 25% respectively for NMDC and SAIL. The plant aims to add value to the region's iron ore resources and boost socio-economic development in Bastar.

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28 views

SAIL, NMDC To Set Up Ultra Mega Steel Plant in Chhattisgarh

SAIL and NMDC will set up a 3 million tonne per annum ultra mega steel plant in Chhattisgarh's Bastar region at an investment of Rs 18,000 crore. Two special purpose vehicles will be set up, with SAIL holding 74% equity in the project SPV and 26% for NMDC, while the mining SPV will have 49% for CMDC and 26% and 25% respectively for NMDC and SAIL. The plant aims to add value to the region's iron ore resources and boost socio-economic development in Bastar.

Uploaded by

rahul srivastava
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SAIL, NMDC to set up ultra mega steel plant in Chhattisgarh

05 May 2015 Steel SAIL, NMDC, steel plant

State-run companies Steel Authority of India Limited (SAIL) and National Mineral
Development Corporation (NMDC) would set up an ultra mega steel plant (UMSP) in
Chhattisgarhs Bastar region.
The greenfield project had proposed at Dilmiliabout 35 kms from the divisional
headquarters of Bastar. The plant would have a 3 million tonne per annum capacity
and would come up with an investment of Rs 18,000 crore. Both the companies and
the Chhattisgarh government would ink agreements for the project in presence of
Prime Minister Narendra Modi who would be visiting Bastar on May 9.
Two special purpose vehicles (SPVs) would be set up, one for the project and
another for the mining, Chhattisgarhs industry secretary Subodh Kumar Singh told
Business Standard. In the project SPV, SAIL would have equity of 74 per cent while
NMDC would hold remaining 26 per cent.
In the mining SPV, Chhattisgarh Mineral Development Corporation (CMDC) would
hold 49 per cent equity while NMDC and SAIL would share 26 and 25 per cent
respectively. Both the SPVs would reach an agreement to facilitate iron-ore supply
for the plant from the mines owned by the CMDC, Singh said. The state government
would assist in land acquisition and required clearances besides mining lease for the
project.
The proposed UMSP is in sync with the union governments Make in India
programme, Singh said. The project would add value to the world-class iron ore that
the Bastar region had been endowed with, he added. The steel plant would also
bring a major change in the socio-economic condition in Bastar, which is otherwise
known for the Left Wing Extremism across the Globe.
- See more at: http://www.metaljunction.com/news/newsdetail/SAIL-NMDC-to-set-up-ultra-megasteel-plant-in-Chhattisgarh_1#sthash.QpcCX5LK.dpuf

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