Nagarnar Steel Plant

2021-09-26T10:23:29Z

2401:4900:51D2:3FA9:3361:BE73:7C4:9AF: /* Arrangement for Power */

{{Use Indian English|date=November 2018}}
{{Use dmy dates|date=November 2018}}
{{Infobox company
| name = Nagarnar Steel Plant
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| industry = [[Steel]]
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| founded = 2021<ref>{{cite news |title=Chhattisgarh ready to buy Nagarnar steel plant in Bastar, if disinvested |url=https://www.hindustantimes.com/cities/chhattisgarh-ready-to-buy-nagarnar-steel-plant-in-bastar-if-disinvested/story-NONG3IDSZ7ZXKFIpc7m7qI.html |access-date=18 March 2021 |agency=Hindustan Times |publisher=www.hindustantimes.com |date=29 December 2020}}</ref> 
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| products = HR Plates & sheets API - 5L quality plates and coils LPG Cylinders HR Coils General Engineering steels High Carbon Steel Silicon steel
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[[National Mineral Development Corporation|Government of India under Ministry of Steel]] is setting up a 3 MTPA capacity greenfield Integrated Steel Plant based on Hi-Smelt technology in Nagarnar, located 16 km from [[Jagdalpur]] in [[Chhattisgarh]] state with an estimated outlay of Rs. 21500 crore.<ref>[https://archive.today/20120912170420/http://www.projectsinfo.in/News.aspx?nId=7dnGsGVKFCkeGmlJyFhljw==]</ref> A pure-play miner, [[National Mineral Development Corporation|NMDC]] had in 2009-10 conceived the Nagarnar steel plant with the intention of moving up the value chain and diversifying its portfolio. The idea was also to hedge itself against the vagaries of iron ore prices.<ref>{{cite web| url=http://www.financialexpress.com/economy/nmdc-steel-unit-divestment-govt-firm-despite-chhatisgarh-cm-warning/645395/| title=NMDC aims September start for Nagarnar steel mill| website=FE| date=28 March 2017}}</ref> This is the only new large-scale steel plant currently under construction in India, with little likelihood of a new plant of similar size plant coming up in the next few years. Tata Steel and JSW Steel are expanding capacity at their existing mills.<ref>{{cite web| url=http://www.argusmedia.com/news/article/?id=1647897| title=NMDC aims September start for Nagarnar steel mill| website=ArgusMedia| date=22 March 2018}}</ref>

==Location==
The plant site is around 16 km from [[Jagdalpur]] and 6 km from the Orissa–Chhattisgarh border. The nearest railway station is Amaguda (around 2 km). The site is located on [[National Highway (India)|National Highway]] [[National Highway 30 (India)|NH 30]]. The nearby airports are [[Jagdalpur]], [[Raipur]] & [[Vishakhapatnam]] and the nearest seaport is Visakhapatnam located at a distance of approx 325 km. The nearest river is Indravati, located at a distance of 3 km.<ref>{{Cite web |url=http://www.nmdc.co.in/right_pplant/Brochure%20circulated%20in%20EOI%20Conference-31.05.11.pdf |title=Archived copy |access-date=23 February 2012 |archive-url=https://web.archive.org/web/20120502185439/http://www.nmdc.co.in/right_pplant/Brochure%20circulated%20in%20EOI%20Conference-31.05.11.pdf |archive-date=2 May 2012 |url-status=dead }}</ref>

==Consultants==
[[National Mineral Development Corporation|Ministry of steel]] has engaged MECON under a contract dated 23 February 2011 for Engineering, Design and Consultancy services for upcoming Steel Plant Nagarnar. As a part of the above, MECON is providing Procurement Services, Basic Engineering Services, Detailed Engineering Services, Designer’s Supervision Services, Inspection Services, Assistance in Commissioning Services and other General Services.<ref>http://www.meconlimited.co.in/FlashNews/NMDC.pdf</ref>

==Project Facilities==
The entire plant is installed in less than 1,800 acres of land and has the following major facilities:<ref>{{cite web| url=http://www.iiche.org.in/sems/PDash,NMDCEDL6.ppt| title=NMDC Nagarnar steel plant presentation| website=IICHE| date=August 2017}}</ref>

{| class="wikitable"
|-
! Facilities
! Details
|-
| Coke Oven & By Product Complex
| 7 m Tall Batteries, 2 Nos.
|-
| Steel Melting Shop (SMS)
| 2 x175 T BOF Converters
|-
| Blast furnace complex
| 4,506 cum
|-
| Sinter Plant
| 460 sqm, 1 No.
|-
| Pig Casting Machine
| 1700 tpd, 3 machines
|-
| Basic Oxygen furnace
| 2 x 175 t
|-
| Ladle furnace
| 2 x 175 t
|-
| RH-OB
| 2 x 175 t
|-
| Gas based Power Plant
| 2 x 40 MW
|-
| Thin Slab caster
| 2 Strand CC and HSM 2RM+4FM+2 Down Coiler
|-
| Hot strip finishing train
| 6 strands
|-
| Lime & Dolo Plant
| 2 x 500 t/d & 1 x 300 t/d
|-
| Oxygen plant
| 2 x 1250 t/d
|}

==Project Status==
The estimated time period for completing the project was about four years which is already overrun by four and half years, as of November 2020.<ref>{{cite web| url=http://www.iiche.org.in/sems/PDash,NMDCEDL6.ppt| title=NMDC Nagarnar steel plant presentation| website=IICHE| date=August 2017}}</ref> Construction work for the project is in progress and around 95% of civil work, 95% of structural erection, 90% of equipment erection have been completed as on
19 November 20.<ref>{{cite web| url=http://steel.gov.in/sites/default/files/annual_Report_English_07March2018.pdf| title=Steel Ministry Annual Report 2017-18 presentation| website=IICHE| date=7 March 2018}}</ref>

It is planned to roll out the first HR coils from the plant from July 2021.<ref>{{cite web|url=https://www.dailypioneer.com/2018/state-editions/nmdc-to-outsource-rmhs-operations-at-nagarnar-steel-plant.html|title=NMDC to outsource RMHS operations at Nagarnar Steel Plant|date=4 November 2018|website=DailyPioneer}}</ref> As a precursor to commissioning of the Coke Oven Battery power has been switched on for the coal handling system including the stacker reclaimer to start commissioning of the coal route of Raw Materials Handling System. The 220KV GIS (Gas Insulated Switch) main receiving sub-station was started in March 2018, followed by power supply to the Sinter Plant.<ref>{{cite web| url=http://www.dailypioneer.com/vivacity/a-powerful-unit.html| title=A POWERFUL UNIT| website=DailyPioneer| date=22 March 2018}}</ref>

The power sub-station packages that will be activated subsequently are the Raw Material Handling Plant, Coke Oven, Blast Furnace, Steel Melting Shop, Hot Strip Mill, Lime & Dolomite Calcination Plant and Railway Yard.<ref>{{cite web| url=https://www.indiaprojectsnews.in/news/nmdc-towards-commissioning-of-coke-oven-battery-at-nagarnar-steel-plant-2678520| title=NMDC Towards Commissioning Of Coke Oven Battery At Nagarnar Steel Plant| website=IndiaProjectsNws| date=21 March 2018}}</ref>

==Iron Ore==
[[National Mineral Development Corporation|Ministry of steel]] has proposed to use mine lease area at Deposit 4 located at Bailadila range of hills at Bhansi near Bacheli in South Bastar’s Dantewada district in Chhattisgarh for meeting the raw material requirement 'exclusively' for the Integrated Steel Plant at Nagarnar. The Deposit 4 iron ore mine is proposed to be developed as a 'standalone project' with an estimated investment of Rs 1899.74 crores. The exploration work was done at Bailadila Deposit 4 by [[National Mineral Development Corporation|NMDC]] during 1972-74. The ore reserves were proved by detailed exploration activities.

Iron ore requirement for the steel plant would be 5 MTPA. The Deposit 4, spread over a mining lease area of 646.596 hectares, has a production capacity of 7.0 MTPA. The remaining iron ore quantity after meeting the requirement of the Nagarnar plant will be sold to domestic customers in Chhattisgarh.

In addition to the mining lease area, 95.13 hectares forest land is identified for development of infrastructure such as the downhill conveyor, screening plant, loading plant and approach road etc. Further, 50 hectares of non-forest land is also required for installation of railway stockyard, administrative building, loading plant (part), tailing dam, STP, and township etc.

Mining plan along with progressive mine closure plan has been approved by Indian Bureau of Mines (IBM), for a production capacity of 7.0 MTPA vide their letter no: No 314(3)/2012-MCCM (CZ)/MP-19 dated 26 July 2013.

[[National Mineral Development Corporation|NMDC]] is operating iron ore mines at Bailadila Complex in South Bastar Dantewada District Chhattisgarh and has long-term commitment to supply iron ore to major steel plants across the country from existing mines. Hence, a JV Company between [[National Mineral Development Corporation|NMDC]] and Chhattisgarh Mineral Development Corporation (CMDC) was formed for the development of a new deposit in the already prospected areas i.e Bailadila Deposit-4 with a production capacity of 7 MTPA for meeting the iron ore requirement of Nagarnar Steel plant. <ref>{{cite web| url=http://www.dailypioneer.com/state-editions/raipur/cgarh-wants-centre-to-reconsider-nagarnar-steel-plant-disinvestment.html| title=C'GARH WANTS CENTRE TO RECONSIDER NAGARNAR STEEL PLANT DISINVESTMENT| website=DailyPioneer| date=22 March 2018}}</ref>

==Pellet Plant & Slurry Pipe Line==
The 15 MTPA Slurry Pipeline System from Bailadila to Nagarnar and a 2 MTPA Pellet Plant at Nagarnar are being implemented by [[National Mineral Development Corporation|NMDC]]. This section of pipeline would be used for transporting iron ore fines from Bailadila to Nagarnar for pelletisation.

This pipeline is planned for further extension from Nagarnar to Visakhapatnam which will be implemented by a JV company of [[National Mineral Development Corporation|NMDC]], Rashtriya Ispat Nigam Ltd (RINL) and Kudremukh Iron Ore Company (KIOCL).<ref>{{cite web| url=https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/steel-psus-sign-pact-to-set-up-rs-3500-crore-slurry-pipeline/articleshow/34964810.cms| title=Steel PSUs sign pact to set up Rs 3,500 crore slurry pipeline| website=ET| date=11 May 2014}}</ref>

==Arrangement for Power==
The steel plant has a total power requirement of 296 MW out of which [[National Mineral Development Corporation|NMDC]] proposes to take 241 MW from the grid through Chhattisgarh State Power Transmission Corporation Limited (CSPTCL) and the remaining power be generated in-house.<ref>{{cite web| url=https://steelguru.com/steel/nmdc-to-commission-coke-oven-battery-soon/504908| title=NMDC to commission Coke Oven Battery soon| website=Steelguru| date=20 March 2018}}</ref>

Thermax was selected by [[National Mineral Development Corporation in year 2012 under a Rs 503-crore contract to set up the captive power plant for the integrated steel plant. Thermax will be responsible to design, engineer, construct and commission the captive plant on a turnkey basis. The supply of equipment includes three 160 tonne per hour capacity boilers that use multiple fuels – blast furnace and coke oven gas from the steel process and light diesel oil – and two 40 MW each steam turbines. Steam from the boilers will be used to blow air into the blast furnace and to generate 80 MW power.<ref>{{cite web| url=https://www.thehindubusinessline.com/companies/thermax-bags-rs-503-cr-order-to-set-up-captive-power-plant/article23091813.ece| title=Thermax bags Rs 503-cr order to set up captive power plant| website=Businessline| date=30 November 2012}}</ref>

==Railway Facilities==

The Railway Siding Project is being implemented by IRCON to bring raw material such as iron ore, coking coal, limestone and dolomite, etc. for production and for outward movement of finished steel and slag. Phase I of the project envisages connecting the 6-km stretch from the KK Railway line with Nagarnar Steel Plant at Ambagaon and Ammmagauda by laying about 53 km of railway line within the steel plant premises at a cost of Rs. 283 crore.<ref>{{cite web| url=https://www.thehindubusinessline.com/companies/railway-siding-project-to-come-up-at-nmdc-nagarnar-steel-plant/article8151826.ece| title=Railway siding project to come up at NMDC Nagarnar steel plant| website=BusinessLine| date=25 January 2016}}</ref>

The project for doubling of Railway line between Kirandul and [[Jagdalpur]] is expected to be completed by January 2019. [[National Mineral Development Corporation|Ministry of steel]] had signed a Memorandum of Understanding (MoU) with the Union Ministry of Railways on 21 December 2012. This project would help in significantly augmenting the evacuation capacity of NMDC’s Bailadila Sector mines by rail from the existing 28 MTPA to 40 MTPA of iron ore. For execution of the project, the Railways has divided the 150 km length of doubling work into three Sections namely, Jagdalpur to Silakjori 45.50 km, Kirandul to Gidam 52.23 km and Silakjori to Gidam 52.73 km.<ref>{{cite web| url=http://www.dailypioneer.com/state-editions/nmdc-to-develop-block-station-yard-in-bastar.html| title=NMDC TO DEVELOP 'BLOCK STATION YARD' IN BASTAR| website=BusinessLine| date=21 May 2017}}</ref>

==Product Mix==
The following is the product mix proposed for the plant:<ref>{{cite web| url=http://www.iiche.org.in/sems/PDash,NMDCEDL6.ppt| title=NMDC Nagarnar steel plant presentation| website=IICHE| date=August 2017}}</ref>

{| class="wikitable"
|-
! Product !! Specification and Size !! Uses
|-
| HR Plates & sheets|| IS 2062, IS 5986, IS 3039, IS 2002 & IS 2041; 5-10 mm thickness x 1030-1650 mm width || Manufacture of bridges, steel structures, ships, large diameter pipes, storage tanks, boilers, railway wagons and pressure vessels.
|-
| API - 5L Quality || API - 5L quality plates and coils; up to X 80. 6-12 mm Thickness x up to 1650 mm width || Line Pipes used in the transportation of oil and gases.

|-
| LPG Cylinders || IS 6240; 2.0-3.15 mm thickness x 1000-1650 mm width || Used in manufacturing of LPG cylinders.
|-
| HR Coils General Engineering steels|| IS 10748, IS 1079; 1.0-10 mm thickness x 900-1650 mm width || For manufacture of pipes and tubes bicycle frames,LPG cylinder frames,rings and general engineering parts.

|-
| High Carbon Steel || SAE 1040/1045; 2.5-4 x 1000-1450(thickness x width) mm x mm || Used in automobile and machine tool industries etc.
|-
| Silicon steel || for IS 15391 & IS 648; 1.0-2.0×900-1250(thickness x width) mm x mm || Used in generators, motors, and transformers.
|-
| Automotive steel || IS 11513/SAE J1392/BSK 46;1.0-6x 900-1250(thickness x width) mm x mm || Used in manufacturing of automobiles etc.
|-
|}

==Strategic Divestment==
The Cabinet Committee on Economic Affairs (CCEA) had in November 2016 given its go-ahead for [[National Mineral Development Corporation|NMDC]] to offload 51% equity in the Nagarnar steel plant in favour of a private company. This was after NITI Aayog recommended such disinvestment. Upon receiving the communication from state government advising against divestment, the steel ministry had sought the Aayog’s views again and the latter remained firm on its recommendation.
<ref>{{cite web| url=http://www.financialexpress.com/economy/nmdc-steel-unit-divestment-govt-firm-despite-chhatisgarh-cm-warning/645395/| title=NMDC aims September start for Nagarnar steel mill| website=FE| date=28 March 2017}}</ref>

The process for strategic divestment of NMDC's Nagarnar Steel plant in Chhattisgarh has kicked-off. Preliminary activities such as the appointment of Transaction Advisor, Legal Advisor and Asset Valuer have been completed and they have started collecting details. The Department of Investment and Public Asset Management (DIPAM) has prepared strategic divestment plan as per the decision of the Cabinet Committee on Economic Affairs (CCEA), Government of India for strategic divestment of various public sector enterprises (PSEs), including Nagarnar Steel plant. <ref>{{cite web| url=https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/strategic-divestment-process-begins-for-nmdcs-nagarnar-plant/articleshow/59602336.cms| title=Strategic divestment process begins for NMDC's Nagarnar plant| website=ET| date=15 July 2017}}</ref>

The Government of Chhattisgarh again made a request to the Central Government to reconsider the decision for the strategic disinvestment of Nagarnar Steel Plant of [[National Mineral Development Corporation|NMDC]].<ref>{{cite web| url=http://www.dailypioneer.com/state-editions/raipur/cgarh-wants-centre-to-reconsider-nagarnar-steel-plant-disinvestment.html| title=C'GARH WANTS CENTRE TO RECONSIDER NAGARNAR STEEL PLANT DISINVESTMENT| website=DailyPioneer| date=22 March 2018}}</ref>

NMDC's move to divest its stake in the Nagarnar steel plant has generated a groundswell of protests in the region confirming the apprehension of state government, as conveyed by it to the centre.<ref>{{cite web| url=https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/villagers-protest-against-nmdc-plan-to-sell-chhattisgarh-steel-plant/articleshow/59595246.cms| title=Villagers protest against NMDC plan to sell Chhattisgarh Steel Plant| website=DailyPioneer| date=14 July 2017}}</ref>

NMDC's rationale for bringing in a partner for its first steel venture, which has been eight years in development, is to infuse working capital and to bring in steel-making expertise.<ref>{{cite web| url=https://www.livemint.com/Companies/Mdi51bLIKVBv1xeTpbwvaN/NMDC-plans-to-sell-nearly-49-stake-in-its-Chhattisgarh-stee.html| title=NMDC plans to sell nearly 49% stake in its Chhattisgarh steel plant| website=Mint| date=26 September 2017}}</ref>

The transaction advisors and the legal advisers engaged by NDMC for divestment have raised certain issues, like, for instance, whether it is possible to privatise the lease held by a public sector company in a scheduled area. Based on this feedback, the Inter Ministerial Group for Strategic Disinvestment has recommended to the government that the privatisation process may be deferred for the time being. <ref>{{cite web| url=http://www.business-standard.com/article/companies/value-addition-will-bring-more-relevance-to-nmdc-chairman-baijendra-kumar-118040900172_1.html| title=Value addition will bring more relevance to NMDC: Chairman Baijendra Kumar| website=Mint| date=10 April 2018}}</ref>

==References==
{{reflist}}
==External links==
{{commons category|Nagarnar Steel Plant}}

{{Steel industry of India}}

[[Category:Economy of Chhattisgarh]]
[[Category:Steel plants of India]]
[[Category:Bastar district]]
[[Category:Coke ovens]]

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Nagarnar Steel Plant