NMDC-RINL may change pellet plant location to Chhattisgarh.

State-run firms NMDC and RINL may have to change location of their Rs. 1,000 crore pellet plant project from Vizag to Chhattisgarh following the state government's insistence, according to a source.

The Chhattisgarh government wanted the location of the plant to be changed as the four million tonnes per annum (mtpa) pellet facility would be using iron ore produced in the state for value-addition, the source added.

NMDC and RINL had in 2012 signed a pact for setting up a pipeline to carry iron ore from Jagadalpur in Chhattisgarh to Visakhapatnam and proposed to set up the pellet plant at the site in Andhra Pradesh.

The total investment in these two proposed projects was envisaged at Rs 2,200 crore including Rs 1,000 crore for the pellet plant.

HBL