The capacity will be raised to 7.3 million tonnes within a year
As part of its corporate vision, Rashtriya Ispat Nigam Limited, the corporate entity of the Visakhapatnam Steel Plant, has decided to foray into manufacturing of high-end products like seamless tubes, cold rolled grain-oriented (CRGO) and auto-grade steel.
To make it a futuristic steel plant, RINL, a Navaratna company, will soon finalise the process for setting up seamless tube mill involving an investment of Rs.2,300 crore.
This will be followed by production of silicon steel in joint venture or on its own.
Once RINL completes its plan to produce 18” and above seamless tubes, the company will become the only steel plant in the country in both public and private sectors to produce such high dia tubes, according to RINL Chairman-cum-Managing Director A.P. Choudhary.
RINL so far has specialised in long products. Entering into flat and highly specialised products will be a milestone for the State-owned company with its head office located in the city.
The company at present is on the verge of completing its 6.3 million tonne expansion at a cost of Rs.12,500 crore.
The capacity will be raised to 7.3 million tonnes within a year by investing Rs.7,500 crore on capital repairs and modernisation.
In the next phase to achieve a capacity of 11 million tonnes, an investment of Rs.23,000 crore will be made to launch production of several high-end products required for telecom, railways and Defence sectors.
When contacted, RINL Director (Commercial) T.K. Chand told THE HINDU that they were expecting heavy investment from Iraq in future after positive response during their talks with the Iraqi authorities.
Iraq said to be having plans to invest $500 billion in next five years. In India has a trade deficit of $19 billion.
Mr. Chand, who was part of delegation which visited Iraq along with Joint Secretary, Steel Lokesh Chandra as part of Indo-Iraq Joint Commission led by Minister of Petroleum and Natural Gas M. Veerappa Moily, asked the Iraqi authorities to make use of RINL’s export of API rounds and seamless tubes under long-term understanding.
RINL representatives also went to Nepal and Myanmar to explore export potential after deciding to open its International Marketing Office at the World Trade Centre at Colombo sometime in October.
Special focus is being made on exporting its products to Middle East by RINL officials.