Nmdc Venturing Into Power Generation

NMDC betting big on power generation PTI 2009-07-28 16:12:43

New Delhi: After foraying into steel-making, NMDC is betting big on power generation, calling it a natural extension of mining coal. The company has been allotted two commercial coal blocks in Madhya Pradesh with estimated reserves of 42 million tonnes each. The mining major is eyeing at more such properties which it wants to develop in a joint venture format and go in for power generation. "Coal blocks will be developed in joint venture (JV)...the JV could be expanded and extended into power generation also," NMDC CMD Rana Som told PTI in an interview. "But today if NMDC goes to power not per se that we want to generate power, but because we want to be involved in coal mining," he said. The navratna firm is keen on diversification and its "thrust area is steel, coal and power." Som said the company will not restrict itself to the conventional mode but is looking to tap solar energy for power generation, for which it has already received application from an interested party. With such mega diversification programmes lined up, the PSU will need Rs 26,000 crore in next five years, he said. "We have about 11,000 crore in our kitty. We will need about Rs 26,000 crore in next 5-6 years." NMDC entered into steelmaking with a Rs 15,000 crore steel project in Chhattisgarh and the strategic acquisition of Sponge Iron India Ltd.