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NMDC has commissioned a ₹5,427 crore integrated project in Chhattisgarh

ICICIdirect Research 28 Sep 2026 DISCLAIMER

News: NMDC has commissioned a ₹5,427 crore integrated project in Chhattisgarh featuring a 10 MTPA Screening Plant-III (SP-III) at Bailadila Deposit in Kirandul, alongside a 135 km, 15 MT slurry pipeline and a 2 MTPA pellet plant at Nagarnar. The project reinforces NMDC's raw material supply security for Indian steelmakers while driving its long-term strategic roadmap to expand total iron ore production capacity to 67 MTPA by FY28 and 100 MTPA by 2030

View: The slurry pipeline acts as replacement of rail/road haulage, potentially resulting in opex savings of Rs 300-350 crore/year, resulting into ~Rs 60-70 per tonne improvement on EBITDA/tonne (FY26 basis). On the other hand, pellet plant enhances the captive capacity from 1.2 MTPA to 3.2 MTPA which can potentially result in lower conversion cost (third party conversion sits at ~$30/tonne) from fines to pellets. Overall, the overall commissioning will jack up NMDC’s capabilities across the iron ore value chain and expand its presence above mining and beneficiation and is thus, incrementally positive for the company.

Impact: Positive

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