NMDC ltd — India’s largest iron ore producer and exporter has incorporated a subsidiary company by the name of "NMDC-SAIl limited" in order to develop, sell and supply iron ore from the allocated mining resources in the State of Chhattisgarh.
NMDC would hold 51 per cent stake in the subsidiary company while SAIl would hold 49 per cent stake , NMDC ltd has informed the BSE in its filing.
It may also be recalled that NMDC ltd had earlier applied for seeking as many as seven prospecting licenses (Pls) for mining iron ore from the Chhattisgarh government in Dantewada district of Bastar, officials informed.
Notably, the company has achieved iron ore production of 16.60 million tonnes (provisional) from its mines in Chhattisgarh as on March 31, 2016, the company informed the Bombay Stock Exchange in its filing. The company further informed that it achieved sales of 16.40 MT during the aforesaid period.
The NMDC Board at its meeting recently had recommended highest ever 1st interim dividend of 950 percent for the year 2015-16 amounting to Rs 3,766 crore, a company statement had informed.
Notably, NMDC has several iron ore mines in leftist insurgency-hit Dantewada district in Chhattisgarh.
The mines which have the finest quality of iron ore, are basically located at Kirandul and Bacheli areas which jointly form a sprawling Bailadila hill.
On the other hand, the Steel Authority of India ltd (SAIl) is co-ordinating the construction of Rail line from DaIlirajhara to Rowghat covering a distance of 95 km with Indian Railways in Chhattisgarh.
The project for doubling of Railway line between Kirandul and Jagdalpur in Chhatisgarh’s insurgency ridden Bastar region is expected to be complete by January 2019, official sources informed.
Notably, NMDC ltd had also signed a Memorandum of Understanding with the Union Ministry of Railways on December 21, 2012 and the aforesaid project would be helpful in significantly augmenting evacuation capacity of NMDC’s Bailadila Sector mines by rail from the existing 28 MTPA to 40 MTPA of iron ore. NMDC had deposited an amount of Rs 150 crores with East Coast Railway and the expenditure incurred as on March 31, 2015 was Rs 132.00 crore, sources informed.
For execution of the project, the Railways has divided the 150 km length of doubling work into three Sections namely, Jagdalpur to Silakjori 45.50 km, Kirandul to Gidam 52.23 km and Silakjori to Gidam 52.73 km.
