RINL-MOIL JV to invest about Rs200 cr in ferro-alloy plant

RINL-MOIL JV to invest about Rs200 cr in ferro-alloy plant

New Delhi: Rashtriya Ispat Nigam Ltd (RINL) and Manganese Ore India Ltd (MOIL)—two leading PSUs under the steel ministry—are looking at investing about Rs200 crore in setting up a ferro-alloy plant in Andhra Pradesh.

“The proposed 50,000-tonnes plant will attract an estimated investment of Rs200 crore," a senior steel ministry official said.

Steel minister Virbhadra Singh, minister of state for steel A. Sai Prathap and other steel ministry officials are scheduled to visit the project site on 12 December for ground breaking ceremony for construction of the proposed plant.

“Once construction is started, the plant is expected to go on stream in next two years," he said.

Steel maker RINL and ferro-alloy manufacturer MOIL had entered into a JV agreement earlier this year to set up the plant at Bobbili industrial town in Vizianagaram district of the state.

The plant will have a ready consumer in RINL, which is doubling its annual steel making capacity to 6.3 million tonnes by next year. Ferro-alloys are used as inputs in making certain steel products.

MOIL, which is sitting over about 31 million tonnes of manganese ore, would supply its raw material to the proposed plant to make ferro-alloys like.

Earlier, the Nagpur-based ferro-alloy firm had also inked a similar pact with steel maker SAIL to set up a unit at Bhillai in Chhattisgarh.