Rama Krishna Sangem
NMDC Steel Limited (NSL), a government company under the Ministry of Steel, achieved 1 million tonnes of cumulative Hot Metal production in a record time of 226 days. This is a feature, NSL’s CMD Amitava Mukherjee proudly shared with the stakeholders. Operational excellence, strategic growth and sustainability are the key guiding principles of the major central PSU of India.
NSL held its 9th Annual General Meeting on September 24 Tuesday at NMDC’s head office in Hyderabad. The meeting was chaired by Amitava Mukherjee, CMD (Additional Charge), Vishwanath Suresh, Director (Commercial) and Vinay Kumar, Director (Technical), who highlighted NSL’s impressive performance and achievements in FY 2023-24.
In his address via video conference to the stakeholders, Mukherjee stated, “On August 12, 2023, the company achieved its First Blow-In of the Blast Furnace and within three days, produced Hot Metal on August 15, 2023. NMDC Steel Limited produced its final product – the HR Coil on August 24, 2023, only 9 days after the production of Hot Metal.
In the journey ahead, NSL achieved 1 million tonnes of cumulative Hot Metal production in a record time of 226 days. It has now been a year since that momentous event, and I am proud to announce that as of July 21, 2024, NSL produced 1.5 million tonnes of Hot Metal from its Blast Furnace. On August 11, 2024, the Plant crossed 1 million tonnes of Liquid Steel production and on August 20, 2024, NSL achieved the milestone of 1 million tonnes of HR Coil production within a year of commissioning.
As we move forward, NSL will prioritise operational excellence, strategic growth and sustainability, with a commitment to continuous improvement and value creation for all stakeholders. We’re grateful for the unwavering support from the Government of India and the State Government of Chhattisgarh.”
Steel Industry Overview
It was highlighted in the AGM that the global steel sector experienced a modest 0.4% increase in production, reaching 1.892 billion tonnes in 2023. While China’s output remained flat due to carbon reduction efforts, India’s steel production grew by 12% to 140 million tonnes.
Under the National Steel Policy 2017, India aims to achieve 255 million tonnes of crude steel by 2030, primarily through the BF-BOF route. With finished steel consumption rising over 14% to 136 million tonnes in FY24, key demand drivers include construction and infrastructure, bolstered by initiatives like the Gati Shakti Master Plan and Make in India.
Physical and Financial Performance
In FY 2023-24, NSL achieved significant production milestones, producing 4.94 lakh tonnes of Hot Rolled Coil in just seven months of operation. Sales reached 3.52 lakh tonnes, generating ₹3,049 crores in revenue, though the company incurred a loss of ₹2,201 crores with a capital expenditure of ₹1,226 crores. In August 2024, NSL recorded its highest monthly production of Hot Metal (1.7 lakh tonnes), Liquid Steel (1.3 lakh tonnes), and HR Coil (1.25 lakh tonnes), while also entering the specialty steel market.
“For the year ahead, NSL is on the verge of breaking even and aims to consistently produce 2.1 lakh tonnes of Hot Metal and 1.5 lakh tonnes of HR Coil monthly by Q3 FY25. NMDC remain dedicated to driving long-term growth while upholding our responsibility to the environment and the communities we serve,” said Shri Mukherjee.
