India’s NMDC’s greenfield steel mill project hit by cost overrun

Monday, 15 April 2019 11:15:30 (GMT+3)   |   Kolkata

Indian iron ore miner NMDC Limited’s 3 million mt per year greenfield steel project has suffered a cost overrun, according to company sources.

The sources said that the project nearing completion and expected to commence trial production between October 2019 and March 2020, was planned for an investment to the tune of $2.2 billion, with cost escalations since the steel mill was first conceived in 2010-11, NMDC’s investment will need to be increased to meet the time and cost overrun.

The company is currently undertaking a review of investments required and an estimation of additional investments that will be required to bring the project into commercial production, and the said increased funding requirement will be conveyed to various investors including financial lending institutions that are providing debt funding for the project, the sources added.

The proposed steel mill being implemented in the central Indian state of Chhattisgarh will produce flat steel products such as hot rolled coil (HRC), cold rolled coils (CRC) and automotive grade steel.

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