NMDC Plans ₹2,977 Cr Iron Ore Blending Plant at VSP Lands Amid Pollution Concerns
The National Mineral Development Corporation (NMDC) is set to establish an iron ore blending plant on the lands of the Visakhapatnam Steel Plant (VSP). The project, proposed as a buffer stockyard, will be executed by Rail Vikas Nigam Limited (RVNL) at an estimated cost of ₹2,977 crore.
NMDC has taken 1,167 acres of land from VSP on a 33-year lease, with sources indicating an annual lease payment of around ₹70 crore. The agreement between NMDC and VSP was finalised in 2023.
Officials said the project is part of a long-standing association between the two organisations. NMDC has been supplying iron ore to VSP for several decades and had extended financial support during the steel plant’s period of financial stress. The PSU also collaborated with VSP in the establishment of the Nagarnar steel plant.
“The relationship between NMDC and Visakhapatnam Steel Plant has been strong over the years, particularly in iron ore supply and technical cooperation,” an official source said.
The proposed facility was initially planned as a pelletisation unit to convert iron ore dust into pellets for steel production. These pellets were expected to be supplied not only to VSP but also to the upcoming ArcelorMittal Nippon Steel plant in Anakapalli district.
The allotted land is strategically located between Adani Gangavaram Port and VSP, adding logistical significance to the project.
Earlier this year, Adani Gangavaram Port signed an agreement with Brazil-based Vale S.A. for the export of iron ore pellets. NMDC has also stated that iron ore dust will be sourced from multiple locations, blended at the facility, and exported through Gangavaram Port in bulk cargo vessels.
On environmental concerns, residents and activists have raised objections over increased pollution due to large-scale iron ore handling at Visakhapatnam and Gangavaram ports.
“We are already struggling with severe dust pollution due to bulk cargo handling. Adding another blending facility will only worsen the situation,” said a resident of Gajuwaka.
While authorities have proposed shifting bulk cargo operations to the upcoming Mulapeta port in Srikakulam district to reduce pollution in Visakhapatnam, residents of Pedagantyada, Gajuwaka, and Gangavaram have opposed the project. They have also questioned the absence of a public hearing before project clearance, demanding greater transparency and consultation.