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Pratim Ranjan Bose

Kolkata. March 15

NEELACHAL Ispat Nigam Ltd, the MMTC-Orissa Government joint venture, is set to register a net profit of more than Rs 200 crore in the first year of operation in 2004-05.

The company, in which MMTC holds a majority stake, is currently making profits to the tune of Rs 1 crore a day.

Informed sources in MMTC said that, keeping in tune with the high revenue generation, the company was in the process of finalising a Rs 500-crore expansion plan to attain 1.1 million tonne steel making capacity in two years.

Currently, Neelachal Ispat has a capacity to produce 1.1 million tonne of pig iron.

In a major shift from the previous plan under which the Orissa Government was supposed to finance Rs 200 crore, the balance coming through the debt route, the company was now actively considering financing the entire expansion project from internal generation. An MMTC official said the company was looking forward to quick completion of the expansion plans. "Plans are being drawn up very fast and we are now just about to place orders for plant and equipment," he said, adding that the entire investment would be directed towards setting up a steel melting shop and wire-rod mill facility to convert the entire pig iron capacity into billets.

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