The commercial production of the pellet plant commenced at Barbil in December, 2009. As the company is actively engaged in the promotion of alternative fuels, the pellet production will be through coal gasification, replacing furnace oil as fuel. This is an innovative initiative, first-of-its-kind in the world using circulating fluidised bed technology for coal gasification.
In April 2014, the company has started producing pellets from its second unit of 4.5 MTPA iron ore pelletisation plant at Barbil. The plant designed by M/s Metso (earlier known as Aker Kvaerner) utilises wet grinding process. The project was commissioned in a record time of 23 months from the first pilling work.