Ispat to set up Rs 800 cr iron-ore pellet plant
P K Mittal and V K Mittal promoted Ispat Industries Ltd (IIL) would set up an iron ore pellet plant at Visakapatnam.
By PTI |
KOLKATA: P K Mittal and V K Mittal promoted Ispat Industries Ltd (IIL) would set up an iron ore pellet plant at Visakapatnam.
"We have firmed up plans for an iron ore pellet plant at Vizag with a capacity of two to three million tonnes. We are negotiating for foreign technology and we will shortly finalise the technology partner," Ispat Chairman P K Mittal told reporters today after the 21st AGM here.
Asked about the cost of the project, Mittal said that the company was working on it, the details of which were yet to be finalised.
A company official, however, said that the three million iron ore pellet capacity plant would cost around Rs 800 crore and the project would be completed in 30 months from the zero date.
The project would be promoted through a SPV, but its financial details were yet to be firmed up.
Speaking about the proposed Foreign Currency Convertable Bonds (FCCB) issue, Mittal said that the instrument would be issued at the right time. The company board has cleared the FCCB.
IIL might also enter a mining venture with the initial target of captive consumption.
"We have formally submitted for iron ore mines with a few state governments, but I cannot reveal names," Mittal said. He also declined to give details about the mining lease proposals.
Mittal said that Ispat was targeting expansion of capacity beyond 3.6 million tonne during the years to come.
"We have already achieved capacity of three million tonne with 85 per cent capacity utilisation. This could easily be increased to 3.6 million tonnes. And, later we will look forward to expand further," Mittal said.
The total global capacity of Ispat Global was 14 million tonne.
"We have firmed up plans for an iron ore pellet plant at Vizag with a capacity of two to three million tonnes. We are negotiating for foreign technology and we will shortly finalise the technology partner," Ispat Chairman P K Mittal told reporters today after the 21st AGM here.
Asked about the cost of the project, Mittal said that the company was working on it, the details of which were yet to be finalised.
A company official, however, said that the three million iron ore pellet capacity plant would cost around Rs 800 crore and the project would be completed in 30 months from the zero date.
The project would be promoted through a SPV, but its financial details were yet to be firmed up.
Speaking about the proposed Foreign Currency Convertable Bonds (FCCB) issue, Mittal said that the instrument would be issued at the right time. The company board has cleared the FCCB.
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IIL might also enter a mining venture with the initial target of captive consumption.
"We have formally submitted for iron ore mines with a few state governments, but I cannot reveal names," Mittal said. He also declined to give details about the mining lease proposals.
Mittal said that Ispat was targeting expansion of capacity beyond 3.6 million tonne during the years to come.
"We have already achieved capacity of three million tonne with 85 per cent capacity utilisation. This could easily be increased to 3.6 million tonnes. And, later we will look forward to expand further," Mittal said.
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The total global capacity of Ispat Global was 14 million tonne.
The company hoped to do better during the current fiscal as the steel market was firming up and had projected a profit against loss last year.
Meanwhile, in order to reduce the power cost, IIL was promoting a captive power plant of 110 MW at an expenditure of Rs 350 crore.
The construction was expected to commence in October this year.
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