Rel Infra eyes Rs15k cr share in PSU steel projects

Rel Infra eyes Rs15k cr share in PSU steel projects


New Delhi: Anil Ambani group’s Reliance Infrastructure is eyeing engineering, procurement and construction (EPC) projects worth Rs15,000 crore from steel PSUs in the next three years.

The company sees PSUs spending Rs50,000 crore on projects in the next 2-3 years and “expects to tap about 30% of these projects," a top Reliance Infrastructure executive said over telephone from Mumbai.

The company is already in talks with companies like SAIL and NMDC and would look at private players as well at a later stage, the executive said on conditions of anonymity.

Under an EPC contract, a company undertakes to build projects of another entity but holds no right over the asset.

Reliance Infra, which already has presence in power and roads among other infrastructure segments, last month entered into an agreement with steel major China Metallurgical Group Corporation to undertake steel projects on EPC contract basis.

“We expect to have an order book of Rs15,000 crores of projects in this segment in coming 2-3 years," he added.

Many steel sector PSUs are on a expansion spree with steel major SAIL setting up a 12 MTPA steel plant and leading miner NMDC coming up with an integrated 3-MTPA steel unit in Jharkhand.