Vizag Steel to set up SEZ

The Visakhapatnam Steel Plant (VSP) is proposing to set up a special economic zone for steel at Visakhapatnam, according to Y Siva Sagar Rao, chairman and managing director.

Delivering the keynote address at a seminar on 'Business excellence-VSP perspective', organised by the CII, Vizag zone, here on recenlty, he said the proposed special economic zone would come up in 250 acres.

Rao said VSP's production capacity would increase to 6.4 million tonnes from the existing 3.2 million tonnes once the ongoing Rs 8,600-crore expansion project was completed.

"By 2020, the company plans to enhance the production capacity to 16 million tonnes at an investment of about Rs 25,000 crore."

According to Rao, customer satisfaction, the best management skills and quality techniques adopted in running the plant and administration as well as production and high-level of motivation among the employees were the key factors for VSP becoming a mini ratna company after it was referred to the Board for Industrial and Financial Reconstruction (BIFR).

Siva Sagar Rao stressed the need for further improvement in infrastructure for the development of industries in and around Visakhapatnam.

Addressing the seminar, district collector Anil Kumar Singhal said that the night landing facility at the Vizag airport would be ready by February 2007.

Elico Ltd managing director Ramesh Datla, who is a member of CII national committee and former chairman of CII, Andhra Pradesh, said that the state had the growth potential in the manufacturing sector in the days to come.

He also highlighted the CII initiatives for SME cluster development through sharing of best practices, leveraging CII institutes of excellence to enhance competitiveness.

CII Vizag zonal council chairman H S Chhatwal gave an overview of the CII activities in Vizag.