Hyderabad: With the rains wreaking havoc, state-run mining giant NMDC has witnessed about 25 per cent dip in its iron ore production in the current fiscal. However, according to a top official, the company, thanks to the arrival of newer equipments and improved weather, expects production to pick up in the second half as it aims to improve on its FY18 production levels.
“Due to the heavy rains, some of the mines got water logged leading to about 24-25 per cent dip in our production. However, we will make it up (the deficit) in the rest of the year,” NMDC chairman-cum-managing-director N. Baijendra Kumar said to the reporters after the annual general meeting.
When pressed about further details, Mr Kumar added, “Traditionally, the second half of the year witnesses higher production due to better weather. Moreover, new equipments that are likely to arrive by October-end or November first week will be of much help.”
The Navaratna firm, which expects to raise its production to 67 million tonnes by 2021-22, plans to spend about Rs 6,500 crore towards capital expenditure in FY19 and FY20 as it looks to up its production from 35.6 million tonnes in FY18.
“Last year we invested Rs 2,800 on capex. This year (FY 19) we will be investing Rs 3,185 crore and next year (FY 20) we will invest `3,290 crore.”