PTI reported that NMDC plans to set up a 139 kilometre long slurry pipeline to carry iron ore from Bailadila mines for its proposed 3 million tonnes per annum steel plant in Nagarnar, with an estimated cost of INR 800 crore.

Both Bailadila mines and the Nagarnar steel plant are located in Chhattisgarh.

The official said that civil work of the project will start once the necessary permissions are granted by different agencies and will be completed before December 2016, when the steel plant is expected to commence production.

The official said that “In order to reduce dependence on railways, NMDC intends to develop slurry pipeline transportation system from Bailadila to Nagarnar as an alternate mode for transportation of iron ore fines in slurry form, subsequent to its conversion to iron ore concentrate suitable for making pellet feed concentrate.”

Due to safety reasons, the slurry pipeline will be laid besides the National Highways or State Highways or district roads to get the maximum extent feasible.

The Official said that this will enable ease of laying and access for monitoring and maintenance.

Official added the Bailadila sector is served by Kothavalasa-Kirandul (K-K) railway line of East Coast Railways which will not be in a position to evacuate the total produce from the Bailadila sector in the present state. Official further added that “Though there is a proposal for doubling the K-K railway line after which the capacity will go up by another 12 million tonne per annum there will be a wide gap between the existing evacuation capacity in Bailadila sector and quantity of the finished product of 65 MTPA envisaged subsequent to opening of new mines of Dep-13 and Dep-4.”