Raipur, Nov. 10: The country’s largest iron ore producer and exporter, National Mineral Development Corporation (NMDC), is likely to incur a loss of around Rs 300 crore due to the Maoist raid on its Bacheli facility in Chhattisgarh’s Dantewada.

On October 30, armed rebels set the conveyor belt of Project 10 and Project 11A of the Bailadila iron ore project — around 450 km from the state capital — on fire, causing severe damage to production.

A high-level team from the company’s headquarters led by director (production) V.K. Jain conducted an inquiry to assess the damage and loss caused by the Maoist attack.

“Though the process of inquiry and calculations of loss are still on, the preliminary probe suggests that the company is going to incur a huge loss of not less than Rs 270 crore,” Jain told reporters today.

The attack, the third major rebel raid this year, was the biggest in terms of impact on production.

In February, the Maoists struck at the NMDC magazine and looted around 20 tonnes of explosives — more than 50 tonnes unofficially — and also killed eight CISF personnel. Production, however, was not affected.

Company officials said 18,000 to 20,000 tonnes of iron ore were produced daily in the two projects affected in the latest raid. Operations would remain suspended for two months due to repair and restoration work on the conveyor belt.

Jain said the company would incur a loss of at least Rs 200 crore due to suspension of production while Rs 70 crore would be required to change the belt and repair other machinery.

“Company officials at the headquarters are having talks with the authorities of Steel Authority of India Limited for the supply of 600 tonnes of steel for the reconstruction work,” Jain said. Efforts were on to restore production in the both the projects at the earliest, he added.

According to Jain, the company officials are discussing the matter with senior officials of engineering companies seeking suggestions to resume production and compensate the loss.

The discussion is in the final stage and the company will reach an agreement soon with the company that submits the best proposal.

The director said there would be no compromise on security and additional deployment would be made at all sensitive points.

The NMDC management had agreed to increase the strength of CISF personnel but the the Union government was yet to take a decision in this regard.