 "Midhani to approach Centre for Rs 500-cr combined steel facility")
According to Midhani, establishment of such a facility is of strategic importance to the country and also to compete with China, which has created huge capacities and was functioning as a strong base for global contractual works.
Speaking to Business Standard, Midhani chairman and managing director, Narayana Rao, said the proposal for creating a national 17,000-tonne large common steel forge, refining and melt facility is being actively discussed by it with key players like Bhel and the Atomic Energy Board. Once finalised, it is expected to come up within a couple of years.
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“The proposed Rs 500-crore facility would be a boon to the steel industry and its ancillaries. Midhani has the technology and access to cheap power for running the facility. However, some of the partners we are in discussions with are not fully committed, which is why, I want the government to come forward and invest,” said Rao.
Operating such a facility involves movement of 400-500 tonne metal press during the process of casting, refining and melting. This can be done with ease by roping in barges near a coastal location. Rao said the facility “should come up near the coast, ideally near Visakhapatnam”.
Rao said Midhani had access to cheap power as it has an 8 per cent share in the 170-Mw captive power plant near Rajahmundry in East Godavari district of Andhra Pradesh. For its share, Midhani is tapping power at Rs 2.20 a unit from the plant, which also has APGenco, Andhra Sugars, Hindustan Zinc and Amara Raja as the other stakeholders.
“If I locate a facility outside Telangana and Andhra Pradesh, my power costs eventually would go up. So, keeping all factors in mind, the project looks very attractive,” added Rao.