MMTC has decided to undertake a major expansion of its joint venture project, Neelachal Ispat Nigam Ltd. (NINL), in Orissa at a cost of Rs.1,855 crore, to take advantage of its strong global reach in trading business, Chairman and Managing Director H. S. Mann said here.
“The phase II of the Kalinganagar steel melting shop and billet caster to produce steel billet is now under progress and the same is expected to be commissioned by the end of this year. The cost of this phase is about Rs.1,855 crore, including expenditure on mining,'' he told this correspondent.
NINL is a joint venture between MMTC and the Orissa Government. MMTC has 49.78 per cent stake in NINL, while the Orissa Government owns 26.7 per cent in the joint venture. MMTC will market the products manufactured by NINL in the domestic and export markets.
Mr. Mann said further integration of the plant would increase value addition and improve unit value realisation and profitability of NINL. “Higher sales value will result in a projected revenue of about Rs.2,500-3,500 crore for MMTC from NINL. There will also be share value appreciation for MMTC after the expansion,'' he added.
Mr. Mann said NINL had chalked out an ambitious expansion plan in a phased manner to eventually increase the capacity to five million tonnes annually within the 2,500 acres available with MMTC. “After phase II, the plant capacity will be increased in two phases to three million tonnes and then five million tonnes,'' he added.
The MMTC CEO said the product mix planned was HR coils and sheets and Re bars along with billets, bars and rods and pig iron. The mining operations are expected to commence in the second half of 2011 after environment and forest clearances from the Ministry of Forests and Environment.
“The expansion project will mark a new chapter in the history of MMTC and its vision to diversify into new segments including steel and renewable energy,'' he said.
