KOLKATA | Jun 23, 2015 : NMDC Ltd, should be able to achieve an incremental rise in production to meet its target of producing 75 million tonne iron ore by 2019-20. There is also room for improvement in the company's performance in respect of financial parameters like gross operating union steel and mines minister Narendra Singh Tomar has said. This follows a review of the company's performance during a visit to Hyderabad on Monday.
"To achieve the target of producing 75 million tonne per annum (MTPA) iron ore by 2019-20, there needs to be visible incremental increase in production in consecutive years. NMDC needs to have a strategic vision and plan for the same," the minister said. He advised NMDC to maintain a parity between its physical and financial performance.
"NMDC must focus on increasing iron ore production. This will have the twin benefit of keeping prices in check and ensuring equitable supply of raw material to big and small producers. As a PSU mining company, NMDC's responsibility is to ensure that there is no imbalance on these counts," Tomar said.
The minister said delays in execution and commissioning of the ongoing projects needs to be curtailed at the earliest. "NMDC's proposed Nagarnar steel plant, Kumarswamy mechanised mines, deposit 11-B and pellet plant projects must be put on fast track to be completed in time," he added. The minister also said: "Performance in respect of financial parameters like gross operating margin, profit after tax (PAT), per employee profit etc. has scope for improvement."
Earlier NMDC chairman and managing director N Kothari apprised the minister on progress in creating a special purpose vehicle (SPV) for a steel project in Jharkhand, the MoU for which is likely to be signed next month. Kothari also assured the minister that hot trials of the Nagarnar steel plant would commence by December, 2016.
(Source: http://economictimes.indiatimes.com/)