Lloyds to ship project cargo via Vizag port

Setting up Rs 150cr steel pellets unit in Orissa

The recent decision of the Visakhapatnam Port to offer concessions, both in wharfage and handling charges on imported project materials, is finally bearing fruit.

The National Thermal Power Corporation and L&T have already put forward their proposals to import Rs 1,600 crore worth of project cargo from Korea-based Doosan Heavy Industries for their 660x3 mw power project located at Sipat in Chattisgarh through the Vizag port. And the latest to join the bandwagon is Lloyds Steel Industries Limited.

Lloyds Steel Industries Limited is setting up a Rs 150-crore steel pellets unit at Barbil in the Kunjaraha district of Orissa and plans to ship the project cargo for its proposed plant through the Vizag port.

"The 25 per cent rebate in wharfage charges on ad valorem basis and the extended free time for project material from two days to 10 days in case of demurrage charges made us choose Vizag port over Paradip port though it is much closer to our project site," M Shamsuddin, chief project manager of Lloyds Steel pellet unit, told Business Standard.

Talking about the proposed 2.4 million-tonne capacity pellets unit in Orissa, he said it will involve an investment of Rs 150 crore the work of which would be executed in two phases.

"Of the total investment of Rs 150 crore, the machinery alone would cost around Rs 80 crore. A few Chinese companies are supplying latest machinery for the Orissa plant. These machinery would be imported through the Vizag port and we expect our first consignment of the project cargo to reach the port by June-July this year," he said.

The company has taken 30 acres of land from the Orissa government at Barbil area and has already started the site-levelling and civil construction works. The first phase of the plant would commence in 2006-07.

In the first phase, the plant would have the capacity to produce 1.2 million tonnes of pellets. "If the Orissa government fails to provide continuous power supply, we would set up a captive power plant to meet our power requirements," Shamsuddin said.

The company also plans to set up a steel melting unit adjacent to the proposed pellets plant with bigger investments, he added.

"Several major and medium projects are coming up in Orissa and Chattisgarh. Due to the concessions and better services that are in the offing at the Vizag port, we expect many companies to use the port for import of project cargo," Vizag port officials said.