MOIL, RINL to produce ferro alloy
The memorandum of understanding between the two public sector companies under the Steel Ministry was signed on July 26, 2006.
By PTI |
NEW DELHI: The joint venture between Manganese Ore India Limited (MOIL) and Rashtriya Ispat Nigam Limited (RINL) would start producing ferro alloy from the second quarter of 2007.
The memorandum of understanding between the two public sector companies under the Steel Ministry was signed on July 26, 2006.
Being set up with 50:50 equity participation, the manufacturing facility is to be located close to the Visakhapatnam Steel Plant. It would initially have a manufacturing capacity of nearly 60,000 tonnes of ferro alloy per year. Presently, RINL procures about 40,000 tonnes of silico manganese per annum valued at about Rs. 110 crore. The proposed joint venture would meet the entire requirement of RINL.
Under the joint venture furnaces will be set up to produce ferro manganese and silico manganese. Later the company would expand itself to meet the increased demands of RINL. RINL will supply its surplus power to the company and MOIL will supply high grade manganese ore. Also, it would provide technical skill to the company in its day-to-day operations.
The approximate turnover of the joint venture company would be Rs. 200 crore per annum. The project cost is expected to be around Rs. 90 crore. The equity contribution by MOIL and RINL would be to the tune of Rs. 20 crore each and the balance would be through external borrowing. The equity contributions by MOIL and RINL would be met through internal resources by the respective companies. The new company will be registered in Andhra Pradesh.
The memorandum of understanding between the two public sector companies under the Steel Ministry was signed on July 26, 2006.
Being set up with 50:50 equity participation, the manufacturing facility is to be located close to the Visakhapatnam Steel Plant. It would initially have a manufacturing capacity of nearly 60,000 tonnes of ferro alloy per year. Presently, RINL procures about 40,000 tonnes of silico manganese per annum valued at about Rs. 110 crore. The proposed joint venture would meet the entire requirement of RINL.
Under the joint venture furnaces will be set up to produce ferro manganese and silico manganese. Later the company would expand itself to meet the increased demands of RINL. RINL will supply its surplus power to the company and MOIL will supply high grade manganese ore. Also, it would provide technical skill to the company in its day-to-day operations.
The approximate turnover of the joint venture company would be Rs. 200 crore per annum. The project cost is expected to be around Rs. 90 crore. The equity contribution by MOIL and RINL would be to the tune of Rs. 20 crore each and the balance would be through external borrowing. The equity contributions by MOIL and RINL would be met through internal resources by the respective companies. The new company will be registered in Andhra Pradesh.
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