NMDC PLANS CAPEX OF `3,000 CRORE

Resource Digest - - NEWS IN BRIEF -

Ex­pect­ing bet­ter mar­ket con­di­tions, NMDC has planned a capex of Rs 3,000 crore with a 20% growth in turnover for FY18. With the steel in­dus­try com­ing to a healthy po­si­tion, NMDC has set a pro­duc­tion tar­get of 37 mil­lion tonne (mt) this year from the cur­rent level of 34 mil­lion tonne. Ad­dress­ing the share­hold­ers dur­ing the 59th AGM, N Bai­jen­dra Ku­mar, CMD, said, “NMDC achieved record iron ore pro­duc­tion of 34 mt and sales of 35.6 mt dur­ing 2016-17, which was 19% and 24% higher year-on-year. The turnover at `8,830 crore was 37% higher than in 2015-16. Net worth of the com­pany was at Rs 22,519 crore as on March 31, 2017.”

“We ex­pect to spend Rs 3,000 crore to­wards capex in­clud­ing the ex­pen­di­ture on Na­gar­nar steel plant in Ch­hat­tis­garh, ex­pect­ing a 20% growth in turnover dur­ing FY18,” he said. As part of its vi­sion 2025, NMDC plans to in­crease its pro­duc­tion ca­pac­ity to 67 mt per an­num by 2021-22. The strat­egy fo­cuses on growth largely through brown­field ex­pan­sion of ex­ist­ing mines. The com­pany is pur­su­ing al­lo­ca­tion of new iron ore de­posits both par­tic­i­pa­tion in auc­tion and gov­ern­ment dis­pen­saiton route. He said de­vel­op­ment of a green­field mine at De­posit 13 has also been planned in joint ven­ture with Ch­hat­tis­garh Min­eral De­vel­op­ment Cor­po­ra­tion, for which a min­ing lease has been ex­e­cuted.

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