 "RINL to invest Rs 38,500 cr for expansion of Vizag Steel")
Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (Vizag Steel), on January 11, 2016 inked an MoU with the Government of Andhra Pradesh during the ‘Sunrise AP Investment Meet’, held in Visakhapatnam. As per the MoU, RINL will invest around Rs 38,500 crores to take up various projects at Visakhapatnam with an employment opportunity to around 3000 people.
Of the total capex, RINL will invest Rs 3,600 crore for expanding the capacity to 7.3 million tonne per annum (mtpa) and modernisation of the facility. Besides, the company will construct coke oven battery and other projects at an investment of Rs 3,400 crores. For establishing a slurry pipeline and pellet plant project (in joint venture with NMDC and others) another Rs 6,100 crores will be spent. RINL plans to invest Rs 25,000 crores for expanding the capacity to 11.5-12 mtpa in future.
As per the MoU, the Government of AP will support the company’s participation in significant projects in Andhra Pradesh wherever feasible. Such participation may include providing advisory services, setting up manufacturing facilities, infrastructure development, R&D, etc.
In turn, RINL can support the development of infrastructure in Andhra Pradesh, considering Government’s focus on promoting manufacturing and industrialisation in the state and facilitating conducive investment environment. Welcoming RINL’s move for investment of around Rs 38,500 crores at Vizag, N Chandrababu Naidu, Andhra Pradesh CM, assured to extend all the necessary support of the state government to RINL in its journey towards 12 mtpa plant.
Of the total capex, RINL will invest Rs 3,600 crore for expanding the capacity to 7.3 million tonne per annum (mtpa) and modernisation of the facility. Besides, the company will construct coke oven battery and other projects at an investment of Rs 3,400 crores. For establishing a slurry pipeline and pellet plant project (in joint venture with NMDC and others) another Rs 6,100 crores will be spent. RINL plans to invest Rs 25,000 crores for expanding the capacity to 11.5-12 mtpa in future.
As per the MoU, the Government of AP will support the company’s participation in significant projects in Andhra Pradesh wherever feasible. Such participation may include providing advisory services, setting up manufacturing facilities, infrastructure development, R&D, etc.
In turn, RINL can support the development of infrastructure in Andhra Pradesh, considering Government’s focus on promoting manufacturing and industrialisation in the state and facilitating conducive investment environment. Welcoming RINL’s move for investment of around Rs 38,500 crores at Vizag, N Chandrababu Naidu, Andhra Pradesh CM, assured to extend all the necessary support of the state government to RINL in its journey towards 12 mtpa plant.