NMDC Looking To Invest In Renewable Energy Sources

Mining major National Mineral Development Corporation (NMDC) has set its sights on investment in the renewable energy sector. The information comes from Sumit Deb, Chairman and Managing Director (CMD) of NMDC. The top official of the Central PSU affirmed the quest of NMDC to invest in the renewable energy sector as he said that the state owned company is looking at locations in Telangana to set up solar power projects.

“Yes, we have plans. We are looking in Telangana where we have a sponge iron unit,” said Deb about the future investment. The sponge iron facility is not operational currently. The CMD held that his organization may construct the solar power plant on the land available with the facility. The sponge iron unit is located at Paloncha in Telangana and has a capacity 100-tonnes-per-day.

NMDC is the country’s largest mining company and comes under the ambit of the Union Ministry of Steel. The company has planned to set foot into the steel sector by establishing a 3 million tonnes Nagarnar Steel Plant (NSP) in Chhattisgarh. It will be set up through an estimated investment of Rs 23,140 crore. The central government has also approved the demerger of NSP from NMDC. The order also entails the sale of the central government’s complete stake to a strategic buyer.

Mining Companies’ Foray Into Renewables

Mining, by its very nature, is an anti-nature activity. Most mining companies are now trying to make amends by investing in renewable energy projects. In March, mining giant Vedanta Limited approved a proposal to source 580 MW of green energy for its operations in India and a power delivery agreement was signed with the Sterlite Power Technologies Private Ltd for the supply of solar and wind-based energy.

Hindustan Zinc Limited (HZL), another subsidiary of Vedanta, simultaneously announced investing Rs 300 crores towards the development of 200 MW renewable energy capacity with Build-Own-Operate means through an SPV.