OMDC, BSLC to invest Rs1,000 cr in setting up plants

OMDC, BSLC to invest Rs1,000 cr in setting up plants
PTI
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First Published: Sun, Sep 13 2009. 01 07 PM IST
Updated: Sun, Sep 13 2009. 01 07 PM IST
New Delhi: Orissa Mineral Development Corporation and Bisra Stone Lime Co - two of the five Bird Group of Companies under the steel ministry - will invest Rs1,000 crore to set up a pelletisation and a cement plant respectively, besides upgrading their existing facilities.
“In the Bird Group of Companies, two companies, OMDC and BSLC, have modernisation and upgradation plans. They will be making sufficient investments to the tune of Rs1,000 crore to achieve forward integration in terms of Pelletisation, Sponge Iron and Cement Plant,” Steel Secretary P K Rastogi said.
Rastogi did not give a time-frame for these investments. It is understood that the plants would come up in a phased manner by 2012 at their existing sites.
OMDC, which has an estimated iron ore reserves of 200 million tonnes, will set up a one-million tonne per annum (MTPA) Pelletisation plant to convert the ores into pellets, used in making steel. The plant would cost OMDC about Rs900 crore, he said. It will expand its capacity to produce sponge iron from 100 lakh per tonne to 300 lakh per tonne.
OMDC also plans to set up a ferro alloy and ferro manganese plant as it has manganese reserves of about 44 million tonnes, he said.
BSLC will set up a 1-MTPA cement plant as it has limestone reserves of 367 million tonnes and dolomite of about 280 million tonnes.
The forward-integration plans of the two firms as a whole will benefit from the managerial expertise of its new parent Rashtriya Ispat Nigam Ltd (RINL), Rastogi said.
The Bird Group includes five firms - Orissa Mineral Development Corp (OMDC), Bisra Stone Lime Co (BSLC), Karanpura Development Co (KDCL), Scott & Saxyby (SSL), Eastern Investments (EIL).
On Thursday, the government announced, restructuring plans for the Group, by handing over the management control of three firms - Eastern Investments Ltd (EIL), OMDC and BSLC to RINL. It also decided to wind up operations of Karanpura Development Co and Scott & Saxyby.
Rastogi termed the restructuring a “complex” but mutually beneficial exercise. “All the five companies ...as well as the employees will be immensely benefited under the top professional management of RINL having tremendous experience in steel making,” he said.
RINL, he said, will also get benefited by way of having “first time a part fulfillment of their objective of getting raw material security.”
EIL, an investment firm owns majority stake of OMDC and BSLC, while RINL will now be having 51% stake in EIL.
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First Published: Sun, Sep 13 2009. 01 07 PM IST
More Topics: Steel | Industry | OMDC | BSLC | Plant |