Financial Daily from THE HINDU group of publications
Tuesday, Jun 22, 2004

Cross Currency

Group Sites

Corporate - New Projects

VSP plans Rs 3,000-cr capacity expansion

Our Bureau

Mr B.K Panda, Chairman and Managing Director,Vizag Steel, at a press conference in Chennai on Sunday. — Shaiu John

Chennai , June 21

VISAKHAPATAM Steel Plant (Rashtriya Ispat Nigam Ltd) plans Rs 3,000-crore expansion of its capacity to five million tonnes (m.t.) by 2008, from the present 3.5 m.t., according to the Chairman-cum-Managing Director, Mr B.K. Panda.

He told presspersons that besides Rs 2,400 crore from the company's internal accruals, the BOT (build, operate and transfer) operator would fund the remaining Rs 600 crore.

The company would further expand its plant capacity to 10 m.t. by 2018 at a cost of Rs 17,000 crore. This would be funded entirely from internal accruals.

It is also looking for technology partners in Italy, Austria or Germany.

VSP supplies products to a number of Indian companies, including Wheels India, Mahindra & Mahindra and Telco. Around 10-12 per cent of the company's products are exported, mainly to the US.

Mr Panda said VSP was referred to the Board for Industrial and Financial Reconstruction three years ago, but became a zero debt company in October 2003. The Government converted Rs 3,330-crore loan component and Rs 791-crore interest component into equity and preference shares.

The company was able to come out of the red following a spurt in steel prices, effective cost management and financial controls. It has also performed beyond rated capacities consecutively for the last three years.

More Stories on : New Projects | Steel

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HM offers 3-year warranty on Lancers

Tata Motors unveils vehicle range for S Africa
Grasim to procure blended fabrics from China
Sony India streamlines manufacturing operations
United Home looks for investors
UTV promoter consolidates holding — Draft prospectus for IPO likely to be filed in three weeks
Good response to Grasim open offer for UltraTech Cemco
Tecumseh India to set up rotary compressor unit
VSP plans Rs 3,000-cr capacity expansion
L&T-John Deere, SBI sign pact for tractor finance
Panel to review revival plans of PSUs
Heritage Foods turnover up

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line