₹5,427-crore integrated project links Bailadila mines with Nagarnar through processing, slurry pipeline and pelletisation facilities
New Delhi/Raipur: State-owned iron ore producer NMDC Ltd has commissioned its 2 million tonne per annum (MTPA) pellet plant at Nagarnar in Chhattisgarh, marking a major step in the company’s efforts to expand its presence across the iron ore value chain.
The pellet plant is part of a ₹5,427-crore integrated project connecting NMDC’s iron ore operations at Bacheli with its steel plant at Nagarnar. The project combines iron ore processing, slurry transportation and pellet production into an integrated system.
The overall infrastructure comprises a new iron ore processing plant at Bacheli, a 15 MTPA slurry pipeline and the 2 MTPA pellet plant at Nagarnar. The 135-km slurry pipeline will transport processed iron ore concentrate from Bacheli to Nagarnar, providing an alternative to conventional road transportation.
From Bailadila fines to steelmaking pellets
The integrated facilities will enable NMDC to make greater use of iron ore fines and slimes generated during mining operations at its Bailadila mines. These materials will first be processed to produce concentrate and subsequently converted into pellets at Nagarnar.
The pellet plant is equipped with Straight Grate Induration technology, which is used to produce iron ore pellets suitable for steelmaking.
The commissioning therefore adds a value-added product to NMDC’s portfolio while enabling more efficient utilisation of its mineral resources.
Maiden production achieved
The maiden production from the Nagarnar pellet plant was monitored live from NMDC headquarters by Chairman and Managing Director Amitava Mukherjee and the company’s senior leadership.
The NMDC leadership could not travel to the project site because of adverse weather conditions.
Calling the commissioning a significant milestone, Mukherjee said the project had involved the execution of three major components—the processing facilities, slurry pipeline and pellet plant—and described the occasion as a long-awaited achievement for the company.
135-km pipeline to provide alternative evacuation route
The slurry pipeline provides a dedicated connection between NMDC’s Bacheli mining operations and Nagarnar. It passes through 61 villages across Bastar and Dantewada districts.
Besides reducing the movement of processed iron ore by road, the pipeline is designed to provide an alternative evacuation route, reduce dependence on rail transportation and establish a dedicated logistics link between the mining and downstream facilities.
The shift towards slurry transportation is also expected to streamline the movement of processed ore over the 135-km distance.
Part of NMDC’s long-term expansion strategy
The Nagarnar pellet plant is part of NMDC’s broader expansion and diversification strategy, aimed at increasing resource utilisation and strengthening its position across the iron ore value chain—from mining and beneficiation to transportation and pelletisation.
The company has set a long-term objective of taking its iron ore production capacity to 100 million tonnes.
The commissioning of the integrated Bacheli-Nagarnar project represents another step in that expansion, while simultaneously creating additional capacity for converting iron ore concentrate into a value-added input for the steel industry.
The project thus brings NMDC’s mining and downstream operations closer together, combining beneficiation, slurry transportation and pelletisation to improve resource utilisation and diversify the company’s iron ore product portfolio.

