India: NMDC Nagarnar Steel Plant to be commissioned in Mar'22

The 3-million tonnes per annum (mtpa) Nagarnar Integrated Steel Plant (NISP), currently owned by NMDC Limited, India's leading miner, will go onstream from Mar'22, a reliable source informed SteelMint.

MECON, a State-owned engineering consultancy service provider, has been awarded the operations and maintenance contract for the plant since steelmaking and its technological aspects are not NMDC's core business. Mecon has also been appointed to pre-commission and commission the plant, including conducting hot and cold trial runs with participation of technology suppliers.

"The commissioning process will start from Mar'22 and will continue in phases. Currently, machine trials are being undertaken," the source informed.

Normally a steel plant goes onstream with the coke oven unit, followed by the blast furnace, steel melting shop (SMS) and then rolling mill. The source said the coke oven capacity will be commensurate with the 3-mtpa crude steel capacity of NISP.

The plant had an initial investment estimate of over INR 15,000 crore. Subsequently it was revised upwards to INR 21,000 crore and has remained at that level. However, the source clarified that the full investment cannot be estimated till the project completion stage. "We will see how things transpire. Cannot comment till completion of the project," said the source.

Mecon will hire experts and other employees especially since NMDC is not allowed to undertake any manpower hiring because of the divestment proposals being under way.
The plant will take three years to reach full 3 mtpa capacity.

Concurrently, the demerger and disinvestment process of NISP is going on. 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.