<p>Steel ministry undertaking National Mineral Development Corporation (NMDC) has decided to tap the debt market to raise up to Rs 5,000 crore to fund its expansion programme. The company intends to raise funds in one or more tranches through secured or unsecured non-convertible debentures/bonds on private placement.</p>.<p>The company’s board of directors has approved the proposal in this regard, according to a filing to the stock exchanges. However, the proposed NCD issue needs approval from its shareholders. It will be seeking shareholders’ approval through a postal ballot. The company intends to complete the process of securing approval from shareholders by January 3, 2020, the company said.</p>.<p>NMDC, the country’s largest iron ore miner, is currently in the process of completing its first greenfield steel plant at Nagarnar in Chhattisgarh. The steel plant, which will see an investment of Rs 23,000 crore, is likely to be commissioned in June 2020. For fiscal 2019-20, NMDC has planned a capital expenditure of Rs 3,010 crore. “We are taking a downward revision in our Capex plan. We will spend Rs 2,200 crore on the Nagarnar steel plant. Another Rs 400 crore will be spent on the slurry pipeline and Rs 125 crore for the third screening plant,” Amitava Mukherjee, Director (Finance), NMDC Limited told <em>DH</em>.</p>.<p>The company had spent Rs 2,090 crore in capital expenditure during the last financial year.</p>.<p>He said the original cost of setting up a 3 Million Tonne Per Annum (MTPA) steel plant at Nagarnar was Rs 15,500 crore. However, due to delay in execution the cost has gone up and by the time it is completed in June 2020, its cost will go up to Rs 23,000 crore.</p>.<p>Apart from these projects, the NMDC is also embarking on many other projects including doubling of KK rail line at a combined investment of Rs 7,000 crore.</p>.<p>NMDC has an annual iron ore production target of 34 million tonnes in FY20 despite the closure of Donimalai mines in Karnataka. It plans to increase the capacity to 67 MTPA by 2025.</p>.<p>During the first six months of the fiscal ended September 2019, NMDC produced 13.45 million tonnes of iron ore from all its mines, which is a growth of 10% year-on-year. Its sales during the period went up by 8.7% to 14.54 million tonnes compared to 13.38 million tonnes in the corresponding period last year.</p>
<p>Steel ministry undertaking National Mineral Development Corporation (NMDC) has decided to tap the debt market to raise up to Rs 5,000 crore to fund its expansion programme. The company intends to raise funds in one or more tranches through secured or unsecured non-convertible debentures/bonds on private placement.</p>.<p>The company’s board of directors has approved the proposal in this regard, according to a filing to the stock exchanges. However, the proposed NCD issue needs approval from its shareholders. It will be seeking shareholders’ approval through a postal ballot. The company intends to complete the process of securing approval from shareholders by January 3, 2020, the company said.</p>.<p>NMDC, the country’s largest iron ore miner, is currently in the process of completing its first greenfield steel plant at Nagarnar in Chhattisgarh. The steel plant, which will see an investment of Rs 23,000 crore, is likely to be commissioned in June 2020. For fiscal 2019-20, NMDC has planned a capital expenditure of Rs 3,010 crore. “We are taking a downward revision in our Capex plan. We will spend Rs 2,200 crore on the Nagarnar steel plant. Another Rs 400 crore will be spent on the slurry pipeline and Rs 125 crore for the third screening plant,” Amitava Mukherjee, Director (Finance), NMDC Limited told <em>DH</em>.</p>.<p>The company had spent Rs 2,090 crore in capital expenditure during the last financial year.</p>.<p>He said the original cost of setting up a 3 Million Tonne Per Annum (MTPA) steel plant at Nagarnar was Rs 15,500 crore. However, due to delay in execution the cost has gone up and by the time it is completed in June 2020, its cost will go up to Rs 23,000 crore.</p>.<p>Apart from these projects, the NMDC is also embarking on many other projects including doubling of KK rail line at a combined investment of Rs 7,000 crore.</p>.<p>NMDC has an annual iron ore production target of 34 million tonnes in FY20 despite the closure of Donimalai mines in Karnataka. It plans to increase the capacity to 67 MTPA by 2025.</p>.<p>During the first six months of the fiscal ended September 2019, NMDC produced 13.45 million tonnes of iron ore from all its mines, which is a growth of 10% year-on-year. Its sales during the period went up by 8.7% to 14.54 million tonnes compared to 13.38 million tonnes in the corresponding period last year.</p>