The techno-feasibility report for proposed capacity expansion project for MMTC Ltd-promoted Nilachal Ispat Nigam Ltd would be ready in January.

Ved Prakash, CMD, MMTC, told reporters on the sidelines of a FIMI-organised event here on Monday that Mecon, which has been assigned to prepare the feasibility report for NINL expansion plan, from present 1.1 to 5 million tonnes (mt) a year, would submit it in the next 45 to 60 days.

He explained that NINL proposed to take up the expansion project in two phases at its plant at Kalinganagar in Jajpur district of Odisha. In the first phase, it plans to double the capacity to 2.2 mt by 2020 at around ₹6,000 crore and further ramp it up to 5 mt by 2025 for about ₹14,000 crore.

NINL, which has been hit by fall in demand in steel and pig iron prices, planned to ride the cyclical upturn in the near future. According to MMTC CMD, steel sector’s upturn is expected in the next six to nine months.

He also said that NINL’s captive iron ore mine development project in Odisha would take off next year after obtaining all permissions. NINL hoped to get environment and forest clearances soon for its 110 mt reserves of iron ore at Koira in the districts of Sundergarh and Koenjhar.

MMTC CMD indicated expansion plan coupled with these developments would improve the operative economics of currently loss-making NINL.

He said MMTC and other co-promoters (OMC and IPICOL – two Odisha state PSUs) have agreed to take additional equity in NINL for the proposed project. NINL will also resort to borrowing to finance the project.

Meanwhile, NINL has planned to resume steel-making in December. It was discontinued last year owing to the adverse market condition, Prakash said.

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