Kolkata, March 8 (IANS) Mining major National Mineral Development Corporation Limited (NMDC) is planning to set up a two million tonne per annum steel plant in Karnataka, a top company official said here Monday.

"The Karnataka state government has promised to allocate 2,500 acres of land for construction of a steel plant. This would be NMDC's second steel facility after the proposed three million tonne per annum steel plant in Chhattisgarh," N. Srinivasan, joint general manager (finance) of the company, said.

He said: "A consultant is to be appointed for the Karnataka steel plant for necessary techno economic feasibility. Other reports will be prepared after which construction will start.

"Any shortfall in the required investment may be raised by a combination of debt or equity based on the circumstances prevailing at that time."

Talking about the Chhattisgarh steel plant, the official added that the company is already in possession of 995 acres and permission from the state government has been obtained for drawing water and power required for the construction of the steel plant.