State-run NMDC on Tuesday said it has inked a pact with Tata Projects and Danieli Corus, Netherland to set up the country's largest blast furnace for its upcoming Rs 15,500 crore steel plant at Chhattisgarh.
"NMDC signed the contract for setting up the country's largest blast furnace of 4506 cubic meter for its steel plant with Tata Projects Ltd, Danieli Corus, Netherland and Danieli Corus, India...as part of its forward integration and value addition in setting up the 3 MTPA integrated steel plant at Nagarnar in Chhattisgarh state," the company said.
The blast furnace which will be commissioned by the consortium in 33 months will be designed to produce 9,900 tonnes of metal per day, the country's top iron ore producer said in a statement.
NMDC Chairman Rana Som said the proposed 3 million tones per annum (MTPA) steel plant would be the fastest moving steel plant among all new and existing projects in the country.
The Navratna firm which has a capacity to produce 30 MTPA iron ore has forayed into steel making and plans to construct its first integrated steel mill in Chhattisgarh by 2014.
Besides the Chhattisgarh plant, it has a joint venture with Russia's Severstal to set up a 2 MTPA steel plant in Karnataka at a likely investment of Rs 25,000 crore, which can further be expanded to 5 MTPA.
The company has earmarked Rs 3,200 crore for capacity expansion during the current fiscal of which Rs 2,500 crore will be spent on its steel plant in Chhattisgarh.
The mining giant is eyeing acquisitions to expand its capacity and to ensure raw material security for its upcoming steel mills in Chhattisgarh and Karnataka.
While Tata Projects is Tata Group's engineering, procurement and construction contracting company, Danieli Corus offers engineering and contracting services as well as consultancy in all areas of iron making and steel making.
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