NMDC seeks enhanced access to Ranjitpura rail yard as it looks to ramp up ops at Karnataka 

NMDC, the country’s largest iron ore miner, has written to the Railways seeking land and exclusive rights to a rail yard that will correspond with expansion of operations at the Donimalai and Kumaraswamy mines in the Bellary region of Karnataka.

In a letter to Railway Board Chairperson, Jaya Verma Sinha, the NMDC Chairman & Managing Director (additional charge) Amitava Mukherjee has sought a meeting in order to explain the need for seeking more land, particularly towards mechanising operations at a railway siding that will allow more dispatch of ore from the mines. 

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The Steel Ministry, under which the NMDC falls, has reportedly also put in a recommendation so that approvals for the project is sped-up. 

The Donimalai & Kumaraswamy Mines in Bellary region of Karnataka State, where expansion of iron ore production capacity from existing 14 MTPA (million tonne per annum) to 17 MTPA is under execution, falls under the jurisdiction of Hubbali Division of South Western Railway (SWR) zone. 

So far, the South Western Railway has rejected the handing over the land at Ranjitpura yard, on grounds that the latter is a private yard and “exclusive access” can not be granted to the CPSE. 

“Railways has a provision of leasing unused land to Government departments or PSUs for developing private siding. NMDC has approached South Western Railways (SWR) with Detailed Project Report for re-modelling at NMDCs’ own cost for enhancing siding capacity up to 17 MTPA for iron ore evacuation. Considering our capacity building plans under execution, commensurate augmentation of evacuation infrastructure is also required. Hence, it is requested that Railways may kindly approve the DPR of Ranjitpura yard remodelling or else lease the area …. for a period of 35 years for allowing NMDC to use the yard for stacking & loading,” Mukherjee wrote in his letter. 

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businessline has reviewed the letter. 

 Ramp Up Plans

NMDC is looking to ramp up iron ore production capacity to 67 MTPA by 2025 and 100 MTPA by 2030 (from over 40 MTPA at present). This would require commensurate enhancement of iron ore evacuation capacities including railway siding augmentation. 

The iron-ore miner in its favour has argued that in the last one year despatches were to the tune of 12, 780 rakes (up 96 per cent) from RNJP yard, whereas private agencies could despatch only 510 rakes (below 4 per cent). 

The said Ranjitpura yard has total six lines (Lines 1 to 6). And Lines 1, 2 & 3 are allotted exclusively for private firms and Line 4 is partly to private players and NMDC both. Dump of ore & its subsequent loading is done from these lines. 

On the other hand, Lines 5 & 6 are leased to NMDC (covering 5.3 acre) where mechanised loading is done. 

The CPSE proposes that the existing capacity of Ranjitpura yard stands at 7 MTPA (which worlds out at five rakes per day). To meet NMDC’s growth plan of 17 MTPA an additional 7 MTPA capacity of is required. The expansion will be through Lines 3 and 6 - for 4 MTPA - and the remaining 3 MTPA shall be evacuated through Lines 1 an d 2. This will allow mechanised stacking and loading facilites in Ranjitpura yard.

NMDC in its favour has argued that over the last 10 years, 13,290 rakes (12780 by NMDC and 510 by private parties) have been despatched from Ranjitpura yard. Of this, NIL, 55, 588 & 1,170 rakes (total 1813) despatches were made from Lines 1, 2, 3 & 4. Another 11,477 rake despatches were from Lines 5 and 6 (lines exclusive to NMDC). 

“I request for a convenient date to meet in person and explain the pertinent details,” Mukherjee further wrote in his letter to Sinha.