Boost output to meet demand: Govt to NMDC

Narendra Singh Tomar has told the company that its performance would be judged vis-a-vis its achievements and this target should be incorporated in the MoU.

The government has asked state-run NMDC Limited to more than double its iron ore production to 75 million tonne within four years to meet the growing raw material requirement of domestic steel producers.

Cautioning the PSU to adhere to the new output target, steel minister Narendra Singh Tomar has told the company that its performance would be judged vis-a-vis its achievements and this target should be incorporated in the MoU to be signed by the firm with the government soon.

A source told The Indian Express that at a meeting convened to review NMDC ‘s performance, Tomar told its top brass that the current production level of 30 MT of iron ore per year is inadequate and needs to be upped to a much higher scale. “NMDC should aim to produce 75 MT iron ore by 2018-19 and 100 MT by 2020-22,” he quoted the minister as directing to the PSU.

“NMDC must use all resources in its command, to achieve this ambitious target and this achievement will be the most important criterion while assessing the performance of the company,” Tomar told the meeting. The company produced 30 MT iron ore in FY14. Considering that steel output target has been set at 300 MT by 2025, this would necessitate production of 500 MT of ore annually.