indo-asian news service, Kolkata, June 13: State-owned Rashtriya Ispat Nigam Ltd (RINL) Saturday said that it is in advanced stages of talks with the Orissa government for signing an agreement to set up an ultra mega steel plant.
“We are in advanced stages of talks with Orissa to set up the plant,” the company’s chairman and managing director, P. Madhusudan told media persons here on the sidelines of an event organised by the MCC Chamber of Commerce and Industries here.
He said it has been suggested that two special purpose vehicles (SPVs) be set up on a centre-state partnership model in states which have iron ore deposits.
One SPV will look after the mining needs, with the other ensuring development of proper infrastructure to set up steel plants.
In Orissa, RINL, popularly known as Vizag Steel, is hoping to recover at least three of the six iron ore mining leases under its step-down subsidiary Orissa Minerals Development Company Ltd (OMDC).
Under a legal tussle between the OMDC and the Orissa government, the former has obtained a stay order from the high court preventing the state government from taking possession of its three mines in Bagiaburu, Bhadrashi and Belkundi.
The mining SPV in the state may comprise Orissa Mining Corporation, NMDC and RINL, while the second SPV to facilitate the steel plant may be a collaboration between NMDC, RINL and Industrial Development Corporation of Orissa Ltd.
RINL will also be bidding in the upcoming coal auctions and has plans to set-up its own captive power generation units. “As we grow further, we’ll need more power,” Madhusudan said.
The central government has identified two sites in Orissa’s iron-ore rich Keonjhar district to build steel mills, each with a capacity of 5-6 million tone per annum (mtpa) in the first phase. These mills, named as the ultra mega steel plants, are planned to help meet the ambitious domestic steel output of 300 mtpa by 2025.
Bengal project under consideration
RINL also stated Saturday that its proposed `400cr wheel and axle plant project at West Bengal’s Jalpaiguri is still under consideration and it is waiting for a few issues to be cleared. “There are a few issues and conditions which need to be cleared before a definiitve agreement can be signed. The project is there on the radar,” company’s chairman and managing director told media persons in Kolkata.
RINL targets 4.1mt production in FY ’15-’16
Rashtriya Ispat Nigam Ltd (RINL) Saturday said it has targeted production output of 4.1 million tone (mt) of saleable steel in the ongoing fiscal and would further ramp up the production to 6.5mt for 2016-17. “The centre has targeted producing 300mt of steel each year by 2025. To achieve this, we are gradually ramping up our production capacity and undertaking modernisation measures”, Madhusudan told media persons in Kolkata.