The National Mineral Development Corporation (NMDC) has decided to terminate association related to Nagarnar Steel Project with Bharat Heavy Electricals Limited (BHEL) for failing to complete this contract in Chhattisgarh’s Bastar district.
The company plans to feed raw material to the plant from its iron-ore complexes located in Bastar division. NMDC manages two fully mechanised mines with a capacity of 25 mtpa in Dantewada district of Bastar.
The Nagarnar steel plan was conceived by the NMDC in 2009-10 and the contract to build raw material handling system was awarded to BHEL on August 1, 2011. The estimated cost of the project was Rs 1,395 crore and was stipulated to be completed by February 28, 2014.
The state-run engineering enterprise failed to expedite the contract. Even after continuous follow up at corporation and ministry level, BHEL did not accelerate the progress of the project, resulting in a delay of over five years.
Story Picked from Business Standard
