• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Kolkata , April 28

VIZAG Steel Plant (VSP), belonging to Rashtriya Ispat Nigam Ltd (RINL), is contemplating forming a joint venture with National Minerals Development Corporation (NMDC) for the development of iron ore blocks.

According to Mr Y. Siva Sagar Rao, Chairman and Managing Director of RINL, initial talks have been held but nothing has been finalised. However, the proposed tie-up with NMDC would be a crucial factor in the run-up to RINL's capacity expansion programme from 3.5 million tonnes per annum to seven million tonnes per annum by 2008.

At present, RINL's annual consumption of iron ore is approximately 6 million tonnes per annum, all of it being supplied by NMDC from Bailadila. This is likely to increase to over 10 million tonnes per annum if the capacity expansion programme is undertaken.

"We may form a joint venture with NMDC and develop some iron ore blocks. This is an option in front of us," Mr Rao told reporters. RINL, which does not have any raw material linkages of its own, has applied for four iron ore blocks in Orissa and one at Rowghat in Chattisgarh.

Even for the coking coal RINL had sent a team to Australia hoping to form a joint venture with one of the coal majors. According to Mr Rao a development is yet to take place on this account.

"The fact is that as the coal prices have jumped up the Australian coal companies are not eager to form any joint venture. So, we would have to wait for some time," he said.

Meanwhile, in the current financial year, 2005-06, RINL hopes to wipe out all its accumulated losses, which is in the tune of Rs 900-1,000 crore.

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

Stories in this Section
Dabur India `open' to exiting Dabon

Copyright © 2005, 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