NMDC aiming to increase ore dispatch capacity by 3-4 mn tonnes

Hyderabad, Feb 25 (PTI) State-run miner NMDC is hopefulof increasing its ore dispatch capacity by 3-4 million tonnesper annum with the completion of doubling work in Bailadillamines in Chhattisgarh, connecting it to the main line uptoVisakhapatnam in Andhra Pradesh.

NMDC Ltd has several mines at Bailadila in insurgency-riddled Dantewada district where it produces over 70 percentof its total annual iron ore output and rest from mines inKarnataka.

The mining company produces about 22 million tonnes ofiron ore from its Bailadila sector mines.

According to S Thiagarajan, Director (finance), NMDC,they had entered into an MOU with Indian Railways sometime agoon the Bailadilla-Kirandul railway line doubling projectaccording to which NMDC will fund the project and Railwayswill construct the railway line.

"Cost of the project will be between Rs 800-Rs 900 crore.

This project is likely to be completed over period of fiveyears. Railways will refund the project cost after thecompletion of the project. This will improve our dispatchcapacity by 3-4 million tonnes per annum," Thiagarajan toldPTI.

It is a very critical line for NMDC with 150 km-singleline from where currently they are dispatching around 18million tonnes of iron ore, he said.

To a query on freight charges, Thiagarajan said as therewas no mention of freight charges in the Railway budget, thecompany does not foresee any impact on the ore prices.

"As far as freight is considered there may not be anyimpact. Railways charge Rs 780 per ton for the ore meant fordomestic consumption and Rs 2,546 for export purpose," heexplained.