Kolkata: State-owned Rashtriya Ispat Nigam Ltd confirmed it is in talks with National Mineral Development Corporation (NMDC) and Steel Authority of India Ltd (SAIL)to set up an integrated steel plant in Chhattisgarh, giving Rashtriya Ispat its first captive iron ore block and assured raw material supplies.
The project will be a two- million tonne (mt) steel plant at an estimated cost of around Rs9,000 crore. Details of the stakes of the three partners and the specific location were not disclosed. Last weekend, NMDC had announced plans to invest in a greenfield project and stated that it was in talks with the other two parties for a joint venture.
Y. Sivasagara Rao, managing director of Visakhapatnam Steel Plant whose flagship company is Rashtriya, declined to give further details. The plans will be firmed up after the SAIL chairman’s visit to its Visakhapatnam plant later this month.
Rashtriya Ispat has posted a growth of 8% in its revenues, up to Rs9,126 crore in the year ended March 2007 compared with Rs8,482 crore the corresponding period last year.
One of the major factors contributing to the turnover has been the sale of value-added steel products, which has grown by 20% over the last year.
“We have worked at 124% of our capacity,” said Rao. “We have got the Centre’s nod to increase our production target to 6.8mt by 2008-09.” For this expansion, the company has already awarded contracts worth Rs3,500 crore to several companies, including Larsen & Toubro Ltd, and Bharat McNally Engineering Ltd, to set up processing systems such as blast furnaces. Rashtriya Ispat is planning to enhance production to 16mt in the next 10 years.