NMDC may achieve a Rs 30,000 crore turnover with a Rs 15,000—17,000 crore profit once a steel plant that it is setting up in Chhattisgarh is commissioned in 2014, says Mr Rana Som, who retired as Chairman and Managing Director of the state-owned mining company yesterday.
“I see NMDC after steel plant commissioning as a company of Rs 30,000 crore turnover, a company of Rs 15,000 crore to Rs 17,000 crore profit. It will have manpower of more than 10,000. It will be a significant company,” Mr Som said in an exclusive interview on the day of his superannuation.
He said work on the steel plant is going on as per schedule and it will start production in 2014.
“The steel plant work is going on. It will come up as per schedule in 2014. Most of the packages I think we have ordered. Work is going on in full swing,” Mr Som said.
NMDC is setting up a 3 million tonnes per annum steel plant at Jagdalpur, besides a 1.2—mtpa pellet plant at Donimalai, in Karnataka, and another 2—mtpa unit at Bacheli, in Chhattisgarh.
“The steel plant will contribute about Rs 12,000—13,000 crore revenues. The pellet plants would contribute about Rs 4,000 crore and mining will contribute about Rs 14,000 crore,” Mr Som added.
Replying to a query on iron ore exports from India, the former NMDC chief justified overseas shipments of the mineral as current iron production levels exceed domestic demand.
However, he indicated that exports may dwindle once domestic steel production touches 120 million tonnes by 2015—16.