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RINL sales turnover down 13%

Over the next three years, the company plans to invest about Rs 2,000 cr in joint venture projects as part of its diversification

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BS Reporter Visakhapatnam
Last Updated : Apr 05 2015 | 9:58 PM IST
Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant, posted a decline of 13 per cent in sales turnover during the just-ended financial at Rs 11,718 crore, including exports of Rs 868 crore, compared with fiscal 2013-14. Its sales turnover stood at Rs 13,480 crore in 2013-14.

Company chairman and managing director said VSP had targeted Rs 15,000 crore sales turnover in 2014-15, but could not reach even last year's mark mainly due to low-cost steel imports from China and Russia. Besides, the sluggish domestic steel market also affected its sales, he told mediapersons here.

On the export front, the company registered a 16 per cent growth.

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"In the current fiscal, it is targeting sales turnover of Rs 18,000 crore, including exports of Rs 1,000 crore," he said, adding domestic steel consumption was expected to grow because of government's initiatives in infrastructure projects.

He said the ongoing Rs 12,500-crore expansion project was nearing completion, and with this the company was targeting to produce 4.3 million tonne saleable steel.

It has simultaneously taken up modernisation of its existing plant with Rs 1,200-1,300 crore investment. All these would raise the production capacity to 7.3 million tonnes by 2017-18.

Over the next three years, the company plans to invest about Rs 2,000 crore in joint venture projects as part of its diversification, he said. These include setting up of a 500-Mw power plant in association with NTPC, a 10- mgd desalinisation plant with an investment of Rs 450 crore to meet fresh water requirement, laying of a 315-km long 13-million tonne capacity slurry pipeline from Nagarnar to Visakhapatnam along with NMDC, and a joint venture project with Power Grid Corporation for making transmission line towers at Vizag.

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First Published: Apr 05 2015 | 9:57 PM IST

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