Shimla, Aug 31 - Steel Minister Virbhadra Singh Monday said the National Mining Development Corporation (NMDC) will sign Memorandums of Understanding (MoUs) with steel companies to sell limestone mined in Himachal Pradesh.

'The NMDC will soon sign MoUs with end-users, especially steel plants, as the limestone to be extracted in the Arki region is a vital raw material for making steel,' Singh told IANS.

He said the limestone would also be used by state-owned steel plants.

'The NMDC has already reached an agreement with Gujarat Ambuja Cements Ltd to supply limestone to its cement plants. Similar, agreements would be signed with other companies too,' said Singh, currently on a weeklong visit to the hill state.

Himachal Pradesh allowed NMDC to extract limestone in the Arki region of Solan district last year. This is one of the biggest mining projects in the state with an investment of more than Rs.5 billion.

The state government will get an annual royalty of Rs.110 million and NMDC will generate direct and indirect employment for more than 5,000 people.