NMDC to ramp up capex in current fiscal

New Delhi (PTI): State-owned iron ore miner NMDC has plans to ramp up its capex by about 70 per cent to Rs 2,720 crore in the current fiscal and a major part of these funds would be spent on its upcoming steel project in Chhattisgarh. The company had spent Rs 1,607 crore on expansion in 2012-13. NMDC plans Rs 1,880 crore investment on the steel plant in 2013-14, Rs 251 crore on expansion and modernisation of its mining units, Rs 100 crore on doubling of railway line between Kirandul and Jagadalpur among others, NMDC has said in a recent presentation to analysts. NMDC is setting up a three million tonnes per annum steel plant at Nagarnar with an investment of Rs 15,525 crore. The company had invested Rs 1,092 crore in the plant in 2012-13. The company has also embarked on Rs 607.17 crore outlay on Baildalia iron ore project, Rs 898.55 crore on Kumaraswamy iron ore project to raise iron ore production capacity. Its Rs 572 crore investment on Donimalai pellet plant is nearing completion. All these projects are set to be completed in the current year. NMDC also plans to invest Rs 100 crore in FY'14 on business development. It is in the process of selecting a Mine Developer-Cum-Operator operator for two coal blocks in Madhya Pradesh. As per approved mining plans, coal production would start by end of 2014, for which NMDC is taking all necessary steps, it said. NMDC sold 26.27 million tonnes iron ore in 2012-13, down four per cent over the previous fiscal. Its net profit also fell by 13 per cent to Rs 6,342 crore.