India: NMDC appoints Mecon for Nagarnar plant commissioning

NMDC Limited has appointed Mecon Limited for carrying out the role of pre-commissioning, commissioning, including hot and cold trail runs with participation of technology suppliers at the Nagarnar Steel Plant (NSP). These will be undertaken to achieve the rated capacity and subsequent operation and maintenance of the 3 million tonne per annum (mntpa) plant for a period of three years, which may be extended, based on mutual understanding.

The total fee to be paid by NMDC to Mecon for the above works is INR 467 crore.

The scope of work includes manpower planning/deployment of balance manpower.
While Mecon has in-house expertise for assisting in trial run and up to the commissioning period, and in executing operation and maintenance responsibilities, it will appoint senior-level global steel plant experts to oversee/manage the envisaged activities.

Mecon will engage a working management committee (WMC) of 43 experienced steel industry professionals who shall head various plant units, including coke oven, sinter plant, blast furnace, SMS, and compact strip production (CSP).

Mecon's payment will be linked to output.

Production targets:

• 2 mntpa within one year from the date of first HR coil roll-out from CSP (TSC and HSM).
  
  
• Ramp-up of production up to 2.5 mntpa within two years from the date of first HR coil roll-out from CSP (TSC and HSM).
  
  
• Ramp-up of production up to 3 mntpa within three years from the date of first HR coil roll-out from CSP (TSC and HSM).
  
  

It may be recalled the Union government plans to demerge NISP from the company and divest its stake in the same. Following the prospective demerger, NISP will become a separate company and its management will be responsible for its operations and financial performance.

Government-owned NMDC is India's largest iron ore miner while Mecon is also a State-owned engineering consultancy service provider.