State-owned Rashtriya Ispat Nigam Ltd (RINL) on Saturday said that it is in advanced stages of talks with Odisha government for signing an agreement to set up an ultra mega steel plant.
"We are in advanced stages of talks with Odisha to set up the plant," the company's chairman and managing director, P. Madhusudan told media persons here on the sidelines of an event organised by MCC Chamber of Commerce and Industries here.
He said it has been suggested that two special purpose vehicles (SPVs) be set up on a centre-state partnership model in states which have iron ore deposits.
One SPV will look after the mining needs, with the other ensuring deelopment of proper infrastructure to set up steel plants.
In Odisha, RINL, popularly known as Vizag Steel, is hoping to recover at least three of the six iron ore mining leases under its step-down subsidiary Orissa Minerals Development Company Ltd (OMDC).
Under a legal tussle between the OMDC and the Odisha government, the former has obtained a stay order from the high court preventing the state government from taking possession of its three mines in Bagiaburu, Bhadrashi and Belkundi.
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The mining SPV in the state may comprise Odisha Mining Corporation, NMDC and RINL while the second SPV to facilitate the steel plant may be a collaboration between NMDC, RINL and Industrial Development Corporation of Odisha Ltd.
RINL will also be bidding in the upcoming coal auctions and has plans to set-up its own capacitative power generation units.
"As we grow further, we'll need more power," Madhusudan said.
The central government has identified two sites in Odisha's iron-ore rich Keonjhar district to build steel mills, each with a capacity of 5-6 million tonne per annum (mtpa) in the first phase. These mills, named as the ultra mega steel plants, are planned to help meet the ambitious domestic steel output of 300 mtpa by 2025.