India's mineral company NMDC is set to become a manufacturing company as well. While CMD Rana Som's dogged perseverance in winning the governments - both in New Delhi and at Raipur - for permission to set up a greenfield steel plant in Chhattisgarh is well reported, what has not received that much attention is NMDC's quiet foray into cement manufacturing. Soon NMDC will form a 50:50 joint venture company with the private sector cement manufacturer Gujarat Ambuja to set up a cement unit in the northern state of Himachal Pradesh. The plans for the project are now in the final stages.
In 1990 NMDC obtained mining right to a low silica limestone mine at Arki in Himachal Pradesh. The mineral would have suited steel plants immensely. But the problem was transportation cost. To reach the nearest railhead it would have necessitated capital investment on ropeway. Further if one added the transportation cost to the nearest steel plant at Bokaro it would have been unviable to mine the rich limestone. The mine, thus, remained non-starter.
NMDC CMD persuaded the Himachal government in allowing the Navratna PSU some other option of initiate mining activity there. He roped in Gujarat Ambuja to explore the option of setting up a cement unit. Now the plan to set up a 2 lakh tonne cement plant is on the drawing board. NMDC will invest half of the projected Rs 750 crore investment for the plant. It will also invest in operationalising the mine. Altogether NMDC is likely to invest Rs 500 crore for the project which remained a non-starter for nearly two decades.
Another non-starter project Som is slated to operate is a magnesite mine at Panthal in Jammu. A mine with a production capacity of 25,000 tonnes of magnesite is nearly ready. This is developed by J&K MDC, a subsidiary owned by NMDC Ltd. For construction of approach road to the mine site at hill top with due consideration to control soil erosion, cross drainage works, protection walls, check dams, breast walls, side drains, bridge have been constructed at a cost of nearly Rs 2 crore. The project will become operational very soon. "The entire profit from the mine will be used for developing infrastructure and creating other facilities in the area", said Som.
In 1990 NMDC obtained mining right to a low silica limestone mine at Arki in Himachal Pradesh. The mineral would have suited steel plants immensely. But the problem was transportation cost. To reach the nearest railhead it would have necessitated capital investment on ropeway. Further if one added the transportation cost to the nearest steel plant at Bokaro it would have been unviable to mine the rich limestone. The mine, thus, remained non-starter.
NMDC CMD persuaded the Himachal government in allowing the Navratna PSU some other option of initiate mining activity there. He roped in Gujarat Ambuja to explore the option of setting up a cement unit. Now the plan to set up a 2 lakh tonne cement plant is on the drawing board. NMDC will invest half of the projected Rs 750 crore investment for the plant. It will also invest in operationalising the mine. Altogether NMDC is likely to invest Rs 500 crore for the project which remained a non-starter for nearly two decades.
Another non-starter project Som is slated to operate is a magnesite mine at Panthal in Jammu. A mine with a production capacity of 25,000 tonnes of magnesite is nearly ready. This is developed by J&K MDC, a subsidiary owned by NMDC Ltd. For construction of approach road to the mine site at hill top with due consideration to control soil erosion, cross drainage works, protection walls, check dams, breast walls, side drains, bridge have been constructed at a cost of nearly Rs 2 crore. The project will become operational very soon. "The entire profit from the mine will be used for developing infrastructure and creating other facilities in the area", said Som.
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