Indian metals and minerals group Visa Steel will be putting up a 2.5 million tonne integrated steel project in Chhattisgarh at a cost of around Rs 100 billion.
Speaking at a press conference to announce the company's results, Visa’s chairman, Vishambhar Saran, said the technical feasibility report was underway and would be completed by the end of July.
In the first phase, Visa Steel would set up a one million tonne rolling mill, which would cost Rs 5-6billion. The full project would be completed over a period of 5-6 years.
Vishal Agarwal, managing director said the balance would have to be acquired and the full requirement would emerge once the feasibility report was completed.
The Chhattisgarh plant would produce long products for the domestic market while the Orissa project would be partly for domestic and export markets.
Mr Agarwal said, "Our strategy remains to establish a globally competitive and worldclass integrated facility of special and stainless steel making in Orissa, with captive power generation and backward linkage of raw materials mines."
Visa Steel is planning to integrate backwards into the mining of iron ore, chrome ore and coal. Iron ore is currently being sourced from Orissa Mining Corporation (OMC) until commencement of its own mining operations.
So far, Visa has invested around Rs 10billion in pig iron, coke and ferro chrome projects. Saran said orders worth Rs 8billion had been place for further expansion in Orissa.
The 300,000 tonne sponge iron plant with and the power plants were nearing completion.
A part of the Patrapada coal block at Talcher with a 54 million tonne deposit has been allotted to the company. Visa Steel is also developing a chrome ore deposit through its subsidiary company, Ghotaringa Minerals Ltd.
The requirement of coking coal is being imported from Australia.
Source: Business Standard
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