Manaksia plans to set up Rs 500cr steel plant in Orissa

Kolkata-based Manaksia Limited plans to set up a Rs 500-crore integrated steel plant in Orissa.

Addressing a press conference, Kuber Rai, general manager (projects) of Manaksia Limited, said, "The company till now has a wide range of product portfolio which includes aluminum products and steel-rolled products among others. To diversify further, the company is setting up the steel plant."

The company is planning to start the construction of the first phase of the plant with an installed capacity of 600 tonnes per day at an investment of Rs 200 crore.

"The land for the plant has just been acquired and we expect to commence the production from the end of the calendar year," Rai said. The second phase of construction would begin six months after the first phase goes into production and will also have an installed capacity of 600 tonnes per day, he added.

Manaksia, which recently was made custodian-cum-agent of Kumar Metallurgical Corporation Limited (KMCL), has appealed to the workers to allow the plant to start production and also assured them that they would be taken on the payroll.

It may be recalled that the Asset Reconstruction Company India Limited (Arcil) took possession of the sponge iron plant of KMCL located at Chityal in Nalgonda district because the company defaulted in the payment of interest and principle installments of loans to banks and financial institutions.

KMCL defaulted and owes around Rs 250 crore to various lenders like ARCIL, IDBI and IFCI. The company also defaulted on the orders of the Debt Recovery Tribunal (DRT), Hyderabad, and the Debt Recovery Appellate Tribunal (DRAT) directed it to deposit monthly payments to lenders.

"From the time we were made the custodian-cum-agent by Arcil, the previous management has created lot of problems, but we want to assure the workers that the plant would be made fully operational," Rai said.

Rai said that KMCL subsequently appealed to DRT against the possession, who in turn ordered against Arcil's possession. Arcil in turn went and appealed to the DRAT against the DRT order. "The DRAT issued an ad-interim stay of the DRT order and the next hearing is scheduled for February 28," he said.

According to Rai, the company will upgrade the technology and commence production within 30 days, provided the workers of KMCL cooperate.