The Hindu : Andhra Pradesh News : VSP readies expansion plan

Online edition of India's National Newspaper
Friday, Feb 18, 2005

Andhra Pradesh

Andhra Pradesh

VSP readies expansion plan

By Our Staff Reporter

VISAKHAPATNAM, FEB. 17. Rashtriya Ispat Nigam Limited (RINL) --the corporate entity of Visakhapatnam Steel Plant (VSP) -- has prepared a plan to double its capacity with an outlay of Rs.8,250 crores by 2007-08.

VSP is planning to go for market borrowing of Rs.2,000 crores to Rs.2,500 crores and meet the rest from its internal resources.

``We will mobilise funds from internal accruals and borrowings without seeking Government aid," the RINL Chairman and Managing Director, Y. Siva Sagara Rao, told reporters on Thursday.

Cabinet nod soon

The project envisages enhancing the production capacity of hot metal from 3.4 to 6.5 million tonnes (mt), liquid steel from three to 6.3 mt and saleable steel from 2.6 to 5.7 mt.

"The plan is likely to figure at the pre-Public Investment Board meeting on February 21. We are expecting the Cabinet nod by March 31," Mr. Rao said adding that they would complete the expansion in 36 months.

JV with foreign firms

Mr. Rao added that to overcome raw material shortage, they were planning joint ventures with foreign companies to source coking coal from Australia, Canada and Columbia. Talks were also on to get the raw material from Jharkhand.

For meeting iron ore requirement, VSP has requested the Centre to accord permission for owning captive mines in Orissa and Chhattisgarh. "We are also examining a proposal to enter into a joint venture with the National Mineral Development Corporation (NMDC)," he added.

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