State-run NMDC Ltd has successfully commissioned its ₹5,427 crore integrated iron ore project in Bastar, Chhattisgarh, featuring a 2 MTPA pellet plant at Nagarnar and an 15 MTPA slurry pipeline from Bacheli. According to the Ministry of Steel, the project includes a new iron ore processing plant at Bacheli, the 135-km slurry pipeline, and the pellet plant at Nagarnar. The integrated facilities connect NMDC's iron ore operations at Bacheli with its steel plant at Nagarnar, creating an end-to-end value chain from mining to steel production. The milestone of first production at the pellet plant was monitored live from NMDC's headquarters by Chairman and Managing Director Amitava Mukherjee, alongside senior officials, due to unfavourable weather preventing their presence on-site.
The 135-km slurry pipeline represents a significant infrastructure development, carrying processed iron ore concentrate from Bacheli to Nagarnar as an alternative to road transport. As reported by the Ministry of Steel, the pipeline passes through 61 villages in Bastar and Dantewada districts and is designed to reduce road movement of processed ore, provide an alternative evacuation mode, and lower dependence on Railways. The facilities enable NMDC to process iron ore fines and slimes from its Bailadila mines into concentrate and subsequently convert the concentrate into pellets for steel manufacturing through the Straight Grate Induration method, which is crucial for steelmaking. The extensive pipeline traverses the challenging terrain of Bastar and Dantewada districts, ensuring a dedicated connection between NMDC's operations at Bacheli and Nagarnar.
According to the Ministry of Steel, the maiden production from the pellet plant adds a new value-added product to NMDC's portfolio and allows the company to make greater use of iron ore fines and slimes generated from its Bailadila operations. The commissioning strengthens NMDC's presence across the iron ore value chain, from mining and beneficiation to slurry transportation and pellet production. Amitava Mukherjee expressed immense pride, stating, "Today is a day of immense pride for everyone at NMDC. This has not been an easy project to execute. It involved the processing facilities, the actual slurry pipeline and the pellet plant. But today is a red-letter day—a day we have been waiting for a long time. This is the day when our collective dream is coming true." The plant forms part of NMDC's broader expansion and diversification strategy as the company works towards increasing its iron ore production capacity to 100 million tonnes in the long term.
Despite the successful project commissioning, NMDC shares experienced a 1.66% decline to ₹78.24 as of 1:18 PM on Saturday, with sellers outnumbering buyers at 60.45% versus 39.55% on the buy side. The stock has traded 151.07 lakh shares worth ₹119.51 crore during the session, reflecting mixed investor sentiment. The stock has declined nearly 10% over the past month and is down 6.43% year-to-date, underperforming the Nifty Midcap 50 index. NMDC's current market capitalisation stands at approximately ₹68,787 crore, with a trailing P/E of 9.42, as reported by The Hindu BusinessLine.
