NMDC Commissions Rs 5,427 Crore Iron Ore Processing, Pipeline and Pellet Project
NMDC's Rs 5,427 crore integrated project links Bacheli and Nagarnar, adding pellet capacity and a slurry route to transport processed iron ore concentrate.

NMDC commissions an integrated iron ore processing, slurry pipeline and pellet project in Bastar, Chhattisgarh, valued at Rs 5,427 crore, according to its September 27, 2026 BSE filing. The company said it had commissioned its 2 million tonne per annum pellet plant at Nagarnar as part of the project connecting its Bacheli iron ore operations with Nagarnar.
The integrated facilities cover ore processing, transportation and pellet production. They will enable NMDC to process iron ore fines and slimes from its Bailadila mines into concentrate and subsequently convert that concentrate into pellets for steelmaking.
The maiden production from the pellet plant was monitored live from NMDC's headquarters by Chairman and Managing Director Amitava Mukherjee and the company's senior leadership. Adverse weather prevented them from travelling to the project site.
Processing and transport link across Bastar
The project brings together three connected facilities:
- A new iron ore processing plant at Bacheli to support the integrated processing and pellet-making chain.
- A 15 MTPA slurry pipeline, stretching 135 km, to carry processed iron ore concentrate from Bacheli to Nagarnar.
- A 2 MTPA pellet plant at Nagarnar using Straight Grate Induration technology to produce pellets for steelmaking.
The pipeline passes through 61 villages in Bastar and Dantewada districts. It provides an alternative to road transportation of processed ore and establishes a dedicated link between NMDC's Bacheli operations and Nagarnar.
According to the company, the pipeline is designed to reduce movement of processed ore by road, provide an alternative evacuation route and lower dependence on Railways.
Pellets add to NMDC's product portfolio
The commissioning extends NMDC's operations across mining, beneficiation, slurry transportation and pellet production. It adds a value-added product to the company's portfolio while allowing greater use of the fines and slimes generated at its Bailadila operations.
Mukherjee described execution as challenging because the project involved the processing facilities, slurry pipeline and pellet plant.
The project forms part of NMDC's broader expansion and diversification strategy as it works towards increasing iron ore production capacity to 100 million tonnes in the long term.
Source: BSE corporate announcement.
