New Delhi: State-owned iron ore producer NMDC on Wednesday said its production this fiscal will go up by 20 percent over 2011-12 to more than 30 million tonne on improved output from the existing mines.
"Our production in the current fiscal will be more than 30 million tonne. Last fiscal, it was 27 million tonne. We will enhance production from the existing mines to achieve the target," NMDC's acting Chairman N K Nanda said.
NMDC had produced 25.19 million tonne iron ore in FY'11, up six percent over 23.8 million tonne recorded in 2009-10. Nanda said production of the steel-making raw material in 2011-12 could match the level of expectation because a proper evacuation system could not be put in place.
"Our production in last fiscal was constrained because evacuation system was not in place. Stockpiles were getting frequently full. This year, we are going to start the unifloor system of evacuation. The Railways have assured us that if the system starts by the end of this quarter, it will give us three million tonnes extra transportation," he added.
NMDC plans to spend Rs 4,655 crore on capital expenditure in the 2012-13 fiscal. Over 75 per cent of the fund (Rs 3,513 crore) would be spent on its upcoming three million tonne per annum steel plant at Nagarnar in Chhattisgarh and the rest Rs 1,142 crore on existing iron ore mines.
Nanda said the Bailadila and Kumaraswamy mines would also start production this fiscal, but these are unlikely to be streamlined before the fiscal-end. "Bailadila will start production by December this year and the Kumaraswamy by March next year. These will give us some capacity, but evacuation system has to be built up. Hence, these can be streamlined only in the next fiscal," he said.