NMDC hikes iron ore production target to 31.6 MT in 2007-08

New Delhi, May 11 (UNI) Minister for Steel, Ram Vilas Paswan has asked the public sector National Mineral Development Corporation (NMDC) to increase its production target to 31.6 million tonnes (MT) of iron ore. This is 17 percent higher than the previous year's production of 27 MT.

The Minister adviced the corporation while reviewing the NMDC's performance here today. He said the company should increase its production in iron ore mines including Kumaraswamy and Donimalai.

Mr Paswan said, NMDC should improve the road infrastructure and invest in equipment to increase output. He said, as the economy is growing at 8-9 per cent year, the demand for steel is buoyant and NMDC should increase its iron ore production.

Congratulating the company for entering into a joint venture with Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) for setting up a greenfield steel plant of 2-3 MT, the Minister said the project report should be prepared at the earliest.

Secretary, Steel R S Pandey who was present on the occasion said, the government is prepared to talk to the concerned state governments if there are any bottlenecks in any specific mine and also hold tripartite meetings with the steel producers on improving the off take from these mines.

He said, the company should target to sell 20 per cent of its output on spot basis.

During 2006-07, NMDC increased its iron ore output by 18 per cent to 27 MT. Its net profit increased 25.8 per cent to Rs 2,300 crore during the year against Rs 1,828 crore in 2005-06. The total turnover rose by 11.9 per cent to Rs 4,150 crore, up from Rs 3,707 crore during 2005-06.

Earlier Mr Paswan asked the company to increase its expenditure on corporate social responsibility. During the last financial year NMDC has spent Rs 24.66 crore mostly on education, health, drinking water facilities, approach roads and culverts. He also directed NMDC to prepare a Vision Plan for utilizing over Rs 5,000 crore reserves. The Minister took stock of the on-going projects and assured the company of full support from the Ministry of Steel. The Company will celebrate 150th anniversary of 1857 uprising by announcing special programmes.

UNI