New Delhi:SAIL and Nagpur-based Manganese Ore India Limited have joined hands for setting up a one lakh tonne ferro alloys plant in Bhilai at an estimated investment of Rs400 crore.
To proceed on the proposed project, the two public sector undertakings under the Ministry of Steel have formed a joint venture company SAIL and MOIL Ferro Alloys Private Ltd with 50% equity partnership each.
“The joint venture company, which was registered on 31July, has a total capital outlay of Rs380 crore,” MOIL CMD K N Mehrotra told PTI.
He said the proposed plant is likely to begin production by 2009-end or early 2010. Ranchi-based PSU Mecon has been entrusted with the consultancy work for the project, he added.
Mehrotra said the ferro alloys produced from the upcoming plant would be used by SAIL as input material for steel making.
In all, the JV company would require about three lakh tonnes of manganese ore to produce one lakh tonne of ferro alloys per annum. As of now, the country’s total ferro alloys production is pegged at about seven lakh tonnes against the requirement of nine lakh tonnes.
In the last fiscal, MOIL produced 13.65 lakh tonnes of manganese ore, registering a rise of over 30% compared to the year-ago period.
Mehrotra said MOIL has set a target of producing 20 lakh tonnes of managanese ore by 2020 and is also looking at South Africa for importing about three lakh tonnes of the ore. The company has also applied for managanese mines in Maharashtra, Orissa and Madhya Pradesh.