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Indian state-controlled NMDC's 3mn t/yr Nagarnar iron and steel plant in Chhattisgarh has commenced commercial operations as of 31 August.

 

The company has started the production of final product, hot-rolled coils, from the Nagarnar plant in Chhattisgarh.

 

Nagarnar steel plant's product mix consists of low-carbon steel, high-strength low-alloy steel and dual phase steel and API quality steel that can be rolled into thickness ranging from 1mm to 16mm. The plant also has the capability to roll 1,650mm wide hot-rolled steel, and the thin slab caster is the widest mill in the public sector steel mills.

 

The hot-rolled coils, sheets and plates from the mill will be used in the manufacturing of LPG cylinders, bridges, steel structures, ships, large diameter pipes, storage tanks, boilers, railway wagons and pressure vessels, as well as in the construction of tanks, railway cars, bicycle frames, engineering and military equipment, automobile and truck wheels, frames and body parts.

 

The plant will also be producing special types of steel to be used in the manufacture of generators, motors, transformers and automobiles at a later stage.

 

The setting up of NMDC's steel plant was first decided in 2008 but was delayed for years as it did not receive environmental and other clearances. The commencement of the steel operations was also delayed by nearly a year, and the plant only began trial production in July 2023.

 

The delay also prolonged the de-merger of the steel plant, which was successfully de-merged in February this year.

 

The government invited expressions of interest for a strategic stake divestment in the steel company last year. The divestment is expected to pick up speed with the beginning of steel plant operations. The government is divesting a 50.79pc stake in the plant. NMDC was expected to hold a 10pc interest in the plant initially, but it is not clear at the moment if the government will control the rest of the stake or transfer some to NMDC.

 

The Department of Investment and Public Asset Management has received several some five to eight expression of interest for the steel plant, but have not disclosed any names so far. argusmedia