The National Mineral Development Corporation will set up a 5 million tonne per annum capacity integrated steel plant in Bellary district at an investment of INR 9,280 crore.
The plant will come up at the special industrial zone to be set up in Bellary, Hospet and Sandur taluks by the Vijayanagar Area Development Authority.
The State High Level Clearance Committee, headed by the Chief Minister, Mr BS Yeddyurappa, which met recently, gave the nod for the project and directed the Karnataka Industrial Area Development Board to acquire the required land.
AS per report, NMDC has sought 5,000 acres with a view to expanding the plant’s capacity to 10 million tonnes in future but the screening committee of the Industries Department, which assessed the requirement of land for the project, is of the view that the extent of land requested is high and 2,500 acres would be sufficient for the plant.
The company officials have requested the government to supply 16.88 million gallons water a day from the Almatti dam in Bijapur district. The Gulbarga Electricity Supply Company will supply 500 MW to the company.
Before commencing work on the project, the Government has directed NMDC to obtain necessary environment clearances from the Karnataka State Pollution Control Board and Union Ministry of Environment and Forest.
NMDC would invest INR 900 crore on land and building, INR 6,000 crore on plant and machinery, INR 1,880 crore on working capital margin and INR 500 crore for the contingency purpose. It would mobilize the amount from the promoters equity, including reserves of INR 5,568 crore and terms loans of INR 3,712 crore.
(Sourced from http://www.steelguru.com/news/index/2009/09/23/MTEzMDM2/NMDC_update_on_5_million_tonne_steel_plant_at_Bellary.html)
Tuesday, September 22, 2009
NMDC update on 5 million tonne steel plant at Bellary
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