Rashtriya Ispat Nigam Ltd — Visakhapatnam Steel Plant — is set for a bright future and the dream of achieving 20 million tonnes production is not an unrealistic one, according to the Chairman and Managing Director, A.P Choudhary.

Choudhury, retiring by the end of the month, said in an interview on Saturday that the plant has the capacity of producing 6.3 million tonnes and one million tonnes more would be added after upgrading and modernising the existing units.

“Further, we will undertake the next phase of expansion to increase the capacity by four more million tonnes with an investment of Rs 22,000 crore after listing of the company. The listing, which has been put on hold due to uncertain market conditions, is likely to be taken up during next fiscal with 10 per cent offloading of government’s equity,” he said.

He said that despite the delay the RINL had recently completed the 6.3 million tonne expansion at a cost of Rs 12,300 crore through internal accruals alone. He said the capital repairs of the two blast furnaces were in progress.

He said the consultant for next phase of expansion -- M.N. Dastur and Co. -- had already submitted the feasibility report.

In the next phase of expansion, the company would foray into flat products. “At present, we are focusing on the right product mix and value addition.”

Multi-unit company: He said RINL had become a multi-unit company during his tenure and it was a matter of great satisfaction for him. It would stand the company in good stead improve its brand image. He said the investment of Rs 1,000 crore on a forged wheel factory at Rae Bareli in Uttar Pradesh and Rs 300 crore rail on an axle plant near New Jaipalguri in West Bengal would strengthen RINL in those states.

Iron ore mines: The company, which suffered for want of captive iron ore mines in the past, had made considerable headway in securing iron ore. He hoped that the agreement with Andhra Pradesh Mineral Development Corporation would be signed shortly for exploration of iron ore at Bayyaram in Khammam district of Andhra Pradesh.

The steel plant had already signed a MoU with the APMDC and Kudremukh Iron Ore Company Ltd for sourcing 50 per cent of iron ore mined in Anantapur district in Andhra Pradesh. The Rajasthan Government had granted an iron ore mine at Bhilwara with 260 million tonne of reserves. The steel plant was awaiting clearance from the Union Ministry of Mines for another mining lease at Jahazpur in the same state where the reserves were estimated to be 400 million tonnes. “There should not be any problem for expansion of the plant's capacity in future,” he added.

sarma.rs@thehindu.co.in

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