Saturday, April 23, 2011

RINL mulls setting up steel plant in JV with Karnataka Govt

Rashtriya Ispat Nigam Ltd is planning to set up a three million tonne capacity steel plant under joint venture with the Karnataka Government.

RINL, which runs the Vishakapatnam Steel Plant, a Navratna company, has been eying to utilise the existing facilities of Kudremukh Iron Ore Comany Ltd to set up the plant.

Under a Supreme Court order, which banned mining activity in the eco-sensitive western ghats region, Kudremukh plant was shut down about five years ago.

The investment in the proposed joint venture would be in the order of about Rs 15,000 crore, the company CMD, Mr Pradip Kumar Bishnoi, told reporters here today after launching its Rural Dealership Scheme in Karnataka.

KIOCL has some fine dumps of iron ore which it has not used and RINL is planning to utilise it.

Mr Bishnoi, however, clarified that his company was not looking at any mining activity in the Kudremukh area and would seek mining rights at a place to be granted by the State in the event of the project taking off.

He said that the company would be setting up a four million tonne capacity special products plant at its Vizag unit, investing about Rs 25,000 crore by 2015.

“The process of setting up of this plant has begun. Consultants have already been appointed. Report should be in place within two or three months,” he said.

He said that hitherto RINL had been producing long products and wanted to enter the area of manufacturing flat products like seamless tubes of large diameter 200 to 300 metres, used by oil field, gas distribution and boiler tube industry.

It would also be rolling out cold-rolled non-grain oriented and cold-rolled grain oriented products at the proposed plant, for which it was scouting for technical know-how.

The existing production capacity of 3 mt would be expanded to 6.3 mt by 2011-12 and in another two years to 7.3 mt.

Mr Bishnoi said the company also has plans to expand the production capacity to 20 mt by 2020-21.

To encourage rural distribution of steel, the company has appointed 125 dealers in rural areas and ten in Karnataka. The number of dealers in Karnataka would be ramped up to 200 in the near future.


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