NMDC in process of acquiring 3,000 acres for Bellary steel plant

NEW DELHI: State-run iron ore producer NMDC is in the process of acquiring 3,000 acres in Karnataka for setting up its second steel plant with an annual capacity of 3 million tonnes, at an investment of around Rs 18,000 crore.

"We are going ahead with the steel mill. The process of acquiring about 3,000 acres land for the proposed steel plant through Karnataka Industrial Areas Development Board (KIADB) is also under progress," a senior company official said.

The company has already deposited Rs 158.68 crore with KIADB as the tentative cost of the land plus service charges payable to the state agency. "We have engaged MECON as consultant for preparation of techno-economic feasibility report for the project," he added.

The company, he said, has also received approval from the state government for water and power required to the proposed steel plant. The proposed investment for the Bellary steel plant would be around Rs 18,000 crore, the official said, adding that NMDC might rope in a partner with expertise in steel-making for the project in future.