Gujarat NRE Coke to execute Dharwad plan

The decision is aimed at taking advantage of export benefits

The board of directors of coke manufacturer Gujarat NRE Coke Ltd has passed a resolution allowing Gujarat NRE Coke (GNCL) to install a 400,000 metric tonne (mt) per annum plant at Dharwad in Karnataka instead of its subsidiary Bharat NRE Coke Ltd (BNCL) executing the project.

The decision has been take advantage of resulting export benefits that Gujarat NRE Coke will enjoy.

BNCL, a subsidiary of GNCL, will instead act as a special purpose vehicle (SPV) for the Kalyani Steel joint venture. GNCL has formed a subsidiary Bharat NRE Coke for implementing the Dharwad project, which will be a 400,000 mt capacity metallurgical coke plant.

"There are resultant export benefits in Gujarat NRE Coke implementing the project. GNCL has imported technology for the project and also coal sourcing is in place. It was thought that it would be better for GNCL to implement the project instead of BNCL," said Arun Kumar Jagatramka, managing director, Gujarat NRE Coke.

GNCL has metallurgical coke manufacturing facilities at Jamnagar and Kutch in Gujarat and Dharwad in Karnataka. With an installed capacity of 358,000 mtpa, the Jamnagar plant is operational at full capacity.

At Kutch, with an installed capacity of 324,000, the plant is at present operating at 180,000 mtpa and the remaining capacity is scheduled to be operational by the year end.

The plant at Dharwad, with an installed capacity of 400,000 mtpa, is scheduled to become operational by December 2005. The consolidated manufacturing capacity of the company, including its subsidiary BNCL, will be 14,06,000 mtpa by December 2005.