Rel Infra eyes Rs 15,000 crore share in PSU steel projects

NEW DELHI: Anil Ambani group's Reliance Infrastructure is eyeing engineering, procurement and construction (EPC) projects worth Rs 15,000 crore from steel PSUs in the next 2-3 years and is already in talks with companies like SAIL and NMDC.

"We see around Rs 50,000 crore projects from Steel PSUs coming in next 2-3 years and expect to tap about 30 per cent of these projects," a top Reliance Infrastructure executive said over telephone from Mumbai.

The company is already in talks with companies like SAIL and NMDC and would look at private companies as well at a later stage, the executive said on conditions of anonymity.

Under an EPC contract, a company undertakes to build projects of another entity but has no right over the asset.
Reliance Infra, which already has presence in power and roads among other infrastructure segments, last month entered into an agreement with China's leading equipment manufacturer China Metallurgical Group Corporation to undertake steel projects on EPC contract basis.

"We expect to have an order book of Rs 15,000 crores of projects in this segment in coming 2-3 years," he added.
Many steel sector PSUs are on a expansion spree with steel major SAIL setting up a 12 MTPA steel plant and leading miner NMDC coming up with an integrated 3-MTPA steel unit in Jharkhand. On the power side, the company expects to see an order book of over 21,000 crore in coming years.