18 October 2026
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NMDC Commissions 2 MTPA Pellet Plant in Chhattisgarh, Boosts ₹5,427-Crore Iron Ore Project 

The ₹5,427-crore integrated project includes an iron ore processing plant at Bacheli, a 15 MTPA slurry pipeline and a 2 MTPA pellet plant at Nagarnar in Chhattisgarh.
Indian Masterminds Stories

Raipur: National Mineral Development Corporation (NMDC) 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 strengthen 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 integrated project comprises:

  • A new iron ore processing plant at Bacheli
  • A 15 MTPA slurry pipeline
  • A 2 MTPA pellet plant at Nagarnar
  • A 135-km slurry pipeline connecting Bacheli with Nagarnar

The slurry pipeline transports processed iron ore concentrate from Bacheli to Nagarnar, providing an alternative to road transportation.

Maiden Pellet Production Achieved at Nagarnar

The maiden production from the pellet plant was monitored live from NMDC’s headquarters by Chairman and Managing Director Amitava Mukherjee and senior company officials.

The NMDC leadership team could not travel to the project site due to adverse weather conditions. Despite this, the commissioning and maiden production were monitored from the company’s headquarters.

Mukherjee described the commissioning as a significant milestone for NMDC, highlighting the efforts involved in executing the processing facilities, slurry pipeline and pellet plant.

“Today is a day of immense pride for everyone at NMDC. This has not been an easy project to execute.”

He also described the commissioning as a long-awaited milestone for the company and its employees.

Read also: NMDC’s Decade-Long CSR Support Sustains Residential School for LWE-Affected Children in Dantewada

Project to Process Iron Ore Fines and Slimes

The integrated facilities will allow NMDC to make greater use of iron ore fines and slimes generated from its Bailadila mines.

Under the integrated process:

  1. Iron ore from the Bailadila operations will undergo processing and beneficiation at Bacheli.
  2. The processed material will be converted into iron ore concentrate.
  3. The concentrate will be transported through the 135-km slurry pipeline to Nagarnar.
  4. The concentrate will subsequently be converted into pellets at the Nagarnar pellet plant.

The pellet plant uses Straight Grate Induration technology for pellet production. The pellets can be used as a raw material in steelmaking.

135-Km Slurry Pipeline Connects Bacheli and Nagarnar

The 15 MTPA slurry pipeline is a key component of the integrated project. Stretching approximately 135 km, it connects NMDC’s Bacheli operations with Nagarnar.

The pipeline passes through 61 villages in Bastar and Dantewada districts.

The dedicated transportation system is designed to:

  • Reduce the movement of processed ore by road
  • Provide an alternative mode of ore evacuation
  • Lower dependence on railway transportation
  • Establish a dedicated link between Bacheli and Nagarnar
  • Support more efficient movement of iron ore concentrate

The pipeline therefore provides NMDC with an additional evacuation route for processed iron ore while integrating its mining and downstream operations.

Commissioning Strengthens NMDC’s Integrated Value Chain

The commissioning of the pellet plant expands NMDC’s presence across multiple stages of the iron ore value chain, covering mining, beneficiation, slurry transportation and pellet production.

The project also adds pellets as a value-added product to NMDC’s portfolio. By processing fines and slimes generated from its Bailadila operations, the company can make greater use of material generated during mining and beneficiation.

The integrated infrastructure is also intended to provide greater flexibility in the transportation and utilisation of processed iron ore.

Part of NMDC’s Long-Term Expansion Strategy

The project forms part of NMDC’s broader expansion and diversification strategy.

The company is working towards increasing its iron ore production capacity to 100 million tonnes in the long term. The development of downstream and midstream facilities such as processing, slurry transportation and pelletisation is aligned with this broader growth strategy.

The Nagarnar pellet plant, along with the Bacheli processing facility and slurry pipeline, therefore represents an integrated addition to NMDC’s existing iron ore operations.

About NMDC

NMDC Limited is a Navratna public sector enterprise under the Ministry of Steel, Government of India. The company is primarily engaged in iron ore exploration and mining and has operations across key mineral-producing regions. NMDC is also expanding its capabilities across processing, beneficiation, transportation and value-added iron ore products as part of its long-term growth strategy.

Read also: NMDC Steel Wins Environment & Sustainability Award 2026 for Environmental Initiatives


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