Conceived in 2009-10, NMDC’s under construction steel plant at Nagarnar in Chhattisgarh is running late by at least four years, resulting in a significant cost overrun. The commissioning of the three million tonnes per annum plant has already missed a number of deadlines and is likely to miss the October deadline too, primarily due to termination of a contract with state-run BHEL just a couple of days back.
Way back in 2011, NMDC had awarded the contract to construct the raw material handling system (RMHS) to BHEL and the equipment maker was supposed to complete the package by February, 2014. Peeved at inordinate delay on the part of the BHEL, despite repeated prodding from NMDC and the government, the iron ore miner has decided to terminate the contract. NMDC will now look for a “new route” to complete the package.
RMHS is an integral part to the overall project. Minus the RMHS, neither the blast furnace nor the coke oven and the sintering plant can start. Now, while BHEL has supplied most of the equipment for the RMHS; it will take more than six months for the new vendor to erect the project from the date of appointment. Trial run will follow and the plant can start only after a smooth passage of the trial run.
Sources said various facilities, including blast furnace, coke oven battery and sintering plant, at Nagarnar has been readied and once operational, it will be one of the most modern plants in the country. The commissioning of the plant will not only give a fillip to the country’s steel-making capacity; it will also provide a huge boost to NMDC’s revenue and opportunity for jobs for local people.
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