City-based Steel Exchange India Limited (SEIL) has tied up with Reliance Power to sell power generated from its Ravulapalem unit in West Godavari district.
SEIL has a 150,000-tonne capacity steel melting unit at Ravulapalem. In the same unit, it has an 8 Mu gas-based power plant for which it procures natural gas from GAIL.
“Normally, the power is utilised to run the steel melting unit. But, due to global recession, we had stopped steel production since the last three months though we are continuing with power generation,” B Satish Kumar, managing director of SEIL, told Business Standard.
Under the tie-up, the company will sell the entire power from its plant to Reliance Power at Rs 7 per unit.
Meanwhile, Satish Kumar said SEIL was hopeful of starting production at the newly acquired Gold Star mill at Kothavalasa near Visakhapatnam soon. The company had acquired the 250,000-tonne sponge iron mill of Gold Star Alloy India Limited for about Rs 150 crore and is converting it into an integrated plant.
As part of this, SEIL recently imported 250,000 tonne capacity steel rolling mill equipment from Taiwan. “We are likely to start the production at the rolling mill by June next year and later can take up the steel melting shop work too,” he said.
The company expects its turnover to cross Rs 700 crore during the current fiscal as against Rs 645 crore registered last year.