The Hindu : Andhra Pradesh / Hyderabad News : RINL plans expansion

Online edition of India's National Newspaper
Saturday, Feb 10, 2007
ePaper


<SCRIPT language='JavaScript1.1' SRC="http://ad.doubleclick.net/adj/N4322.hinduonline/B2155503.3;abr=!ie;sz=468x60;ord=[timestamp]?"> </SCRIPT> <NOSCRIPT> <A HREF="http://ad.doubleclick.net/jump/N4322.hinduonline/B2155503.3;abr=!ie4;abr=!ie5;sz=468x60;ord=[timestamp]?"> <IMG SRC="http://ad.doubleclick.net/ad/N4322.hinduonline/B2155503.3;abr=!ie4;abr=!ie5;sz=468x60;ord=[timestamp]?" BORDER=0 WIDTH=468 HEIGHT=60 ALT="Click Here"></A> </NOSCRIPT>

Andhra Pradesh

Andhra Pradesh - Hyderabad

RINL plans expansion

Special Correspondent

Exercise to involve an expenditure of Rs. 25,000 crores Exercise to involve an expenditure of Rs. 25,000 crores over next ten years

HYDERABAD: Rashtriya Ispat Nigam Ltd (RINL), the holding company of Visakhapatnam Steel Plant, has announced major plans for expanding its capacity from the existing 3.6 million tonnes to 16 million tonnes in the next decade involving an expenditure of Rs. 25,000 crores.

To begin with, the company will expand its capacity to 6.8 million tonnes by the end of financial year 2008-09 with an investment of Rs. 5,500 crores, bids for which will be finalised by the end of March.

This will be followed by creation of additional capacity in the next fiscal with an outlay of Rs. 2,500 crores and the VSP is planning to submit proposals for expansion to the Union Steel Ministry for necessary approvals shortly.

Addressing a press conference here on Friday, RINL Chairman and Managing Director Y. Siva Sagar Rao said the company had deposits of over Rs. 6,500 crores and generating cash of over Rs. 2,000 crores annually. It was proposed to take up the expansion at 1:1 debt equity ratio.

Gross sales

The company had registered gross sales of Rs. 6,143 crores, up 10.9 per cent compared to Rs. 5,817 crores of the previous year, during the first nine months of the current financial year ending December. The gross margin during the period was Rs. 1,728 crores and the profit before tax was Rs. 1,428 crores.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh