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Business
NMDC inks gas supply agreement with GAIL for Chhattisgarh pellet plant
✍️ Moneycontrol.com
🗓 21 Oct 2026, 05:46 AM
👁 10
State-owned NMDC has signed a contract with GAIL to provide natural gas to its new pellet plant in Chhattisgarh, aiming to boost production.
National Mineral Development Corporation (NMDC), a government-owned enterprise under the Ministry of Steel, has entered into a gas supply agreement with Gas Authority of India Limited (GAIL). The contract will see GAIL delivering natural gas to NMDC's pelletisation facility being set up in Chhattisgarh. While the exact volume and pricing terms were not disclosed, the partnership is expected to secure a reliable fuel source for the plant's operations.
The pellet plant, designed to process iron ore into high‑quality pellets, is part of NMDC's strategy to add value to its raw material output and meet growing domestic steel demand. Using natural gas instead of coal aligns with the government's push for cleaner industrial processes.
Industry analysts view the deal as a positive step for both companies: NMDC gains a steady gas supply to enhance its production capacity, and GAIL expands its downstream customer base in the steel sector. The agreement also underscores the broader effort to strengthen India's mineral and energy linkages.
The plant is slated to become operational later this year, after which it is expected to contribute significantly to NMDC's overall output and to the regional economy of Chhattisgarh.
The pellet plant, designed to process iron ore into high‑quality pellets, is part of NMDC's strategy to add value to its raw material output and meet growing domestic steel demand. Using natural gas instead of coal aligns with the government's push for cleaner industrial processes.
Industry analysts view the deal as a positive step for both companies: NMDC gains a steady gas supply to enhance its production capacity, and GAIL expands its downstream customer base in the steel sector. The agreement also underscores the broader effort to strengthen India's mineral and energy linkages.
The plant is slated to become operational later this year, after which it is expected to contribute significantly to NMDC's overall output and to the regional economy of Chhattisgarh.