In response to Prime Minister Manmohan Singh’s latest drive at boosting economic growth by fast tracking infrastructure investments, state owned mining company NMDC has prepared an elaborate plan to venture into newer territories, including power generation and coal mining, and advance investments plans for the next financial year, beginning April.
NMDC has a cash reserve exceeding INR 18,000 crore. The traditional and largest iron ore mining company was, thus, one of the PSUs identified by the PMO whose cash surplus could be utilized to improve spending, with an eye on narrowing the country’s fiscal deficit. The Navratna PSU is likely to brief the PMO about its strategy to bring forward a detailed INR 4,655 crore investment plan and to diversify into as many as five newer areas of business.
Mr NK Nanda chairman of NMDC said that “A report will be given to the PMO within a week on our diversification and investment plans. This includes our foray into power generation, coal mining, pelletization, mining of fertilizer minerals like rock phosphate and manganese mining, apart from the already planned steel project.”
He added the chief reason for the company’s major diversification drive, apart from the PMO’s latest directive, was the slow pace of award of new mines in its core area of operation of iron ore.
He added that “We have a lot of unutilized mining capacity, as there is a slowdown in getting new mines. Also, power generation plants will aid our steel making capacity, apart from building a green profile through renewable energy.”
He sad that “We plan to commission new iron ore mines of seven million tonnes capacity at a cost of INR 1,000 crore over the next few years. This will require investing INR 300 crore every year. Also, INR 200 crore will be spent in new acquisitions in Australia. We are looking at acquiring phosphate mines there.”
The plan includes bidding for solar power projects during the next round under the National Solar Mission.
The company has a current iron ore mining capacity of 30 million tonnes from three mechanized mines, two in Bailadila in Chhattisgarh and one in Donimalai in Karnataka. The company produced 25 million tonne of the mineral last year. The annual investments are set to jump from INR 3,399 crore in the current financial year to INR 4,655 crore in 2012-13.
(Sourced from BS)
