The Hindu Business Line : RINL chalks out expansion plan for Vizag Steel

IN a three-phase expansion plan that extends to 2018, Rashtriya Ispat Nigam Ltd (RINL) has chalked out an investment requirement of Rs 18,000 crore to raise steel production to 10 million tonnes in the Vishakapatnam Steel Plant (VSP).

The first phase envisages increasing production from 3 mt to 5 mt at a cost of Rs 3,000 crore, which will be met entirely through internal accruals, said Mr B.K. Panda, Chairman and Managing Director, RINL.

In the second phase, production will be further increased to 6.8 mt and to 10 mt in the third phase. "However, these expansions will be taken up at the end of each phase depending on the market scenario," Mr Panda said. Of the 10 mt , 75 per cent will comprise long products and the rest flat products.

Meanwhile, RINL is also scouting for iron ore and coalmines. As for iron ore, it is in talks with the Governments of Orissa and Chhattisgarh for seeking the lease of iron ore mines in these States.

As metallurgical coal deposits are few in the country, the company is looking at acquiring coalmines overseas. It has been in talks with mines in Canada, Russia, China and Australia. "We have zeroed in on Australia. It could either be joint venture participation or an equity holding arrangement. We should be able to find a mine within a year,'' Mr Panda said.

RINL is also seeking the Government's approval to go in for a voluntary retirement scheme. Currently, VSP employee strength is 16,800.

During the first quarter of the current fiscal, it reported a net profit of Rs 350 crore. Total sales stood at Rs 1,383 crore, up by 31 per cent from the year-ago levels.