NMDC has allocated Rs 50,000-crore capex, as it plans to double production to nearly 100 million tonne (MT) over the next five to six years. The investment will be utilised mainly towards mine enhancement, securing permissions for deeper drilling, new mine bids and acquisitions and, equipment and allied facilities.

Approvals are expected by end of the next FY, with nearly Rs 2,500 crore of capex expected in FY25. Some approvals have been received and it will float tenders for equipment soon, whereas some projects are in the DPR stage. Besides, the iron-ore producer would also look at bidding and acquisition of new iron-ore mines. Capex peaking at around Rs 9,000 crore a year will be for three to four years from the year after next, FY26.

The other part of the capex plans include setting up of conveyor belts (of around Rs 1,000 crore) and slurry pipelines (expected to cost Rs 10,000 crore), pellet plants at Rs 2,000 crore, building stockyards, for which consultants like Deloitte, McKinzie and BCG have been engaged, at a cost of Rs 10,000 crore.

NMDC operates mines in Chhattisgarh and Karnataka. In FY24, production stood at over 45 MT, and in FY25, it has guided for a 11 percent increase in production to 50 MT.