The decision of the Congress government came as a major relief for the public sector mining giant as its lease period for mines in Chhattisgarh were set to end in March 2020.
NMDC produces roughly 70 per cent of its total annual iron ore from mines in Chhattisgarh which are based in extreme leftist insurgency-hit Dantewada district.
Chief Minister Bhupesh Baghel who also holds mining portfolio, gave approval for extending the mining lease after NMDC's Chairman-cum-Managing Director (CMD)N Baijendra Kumar agreed to release Rs 600 crore immediately to the state government for renewal.
The meeting was held in Raipur at the official residence of Chhattisgarh Chief Minister which lasted for nearly 40 minutes. Kumar, the 1986 batch Chhattisgarh cadre IAS officer, has described the Chhattisgarh government's decision a big achievement for the NMDC.
"I feel obliged to Chhattisgarh Chief Minister for conceding my request to extent mining lease, it has come on a day when NMDC is celebrating its 62nd Foundation Day," Kumar told .
He informed that NMDC has also decided to go with the cash-strapped Chhattisgarh Housing Board for construction of a township for upcoming Nagarnar Steel Plant in Bastar district. The project cost is estimated to be Rs 1,200 crore which could go up to Rs 2,000 crore once completed.
( With inputs from IANS )