VSP inks MoU with Steel Ministry

Visakhapatnam Steel Plant (VSP) signed an MoU with the Ministry of Steel for the production of hot metal for 2004-05.

In the performance evaluation parameters in the MoU, a production of 4.2 million tonnes of hot metal was considered for achieving excellent rating during 2004-05.

This production level represents a capacity utilisation of 124 per cent and a growth of more than three per cent over the current fiscal, according to a VSP press release.

The parameters evaluation criteria include efficiency parameters like defectives in saleable steel, value-added steel production, capital expenditure, value of exports, specific consumption of raw materials, BF productivity, labour productivity, specific energy consumption etc, the press release added.

The Ministry of Steel has agreed to supply iron ore from the National Mineral Development Corporation's Bailadilla Mines to meet the total requirement of VSP for 2004-05.

Further, the Steel Ministry has also accepted to take up with the Ministry of Mines, Government of India, and the government of Chhattisgarh, Orissa and Jharkhand for the allotment of suitable iron ore deposits in their states for developing a captive iron ore mine for VSP, the release said.