Ispat Inds plans 3MT pellet unit in Vizag

Ispat Industries is planning a three million tonne pellet plant in Vishakapatnam through a special purpose vehicle (SPV). Ispat would be one of the sponsors for the project.

Ispat is also eyeing operational integration with Global Steel Holdings, its parent company, for better raw material management and cost optimisation.

PTI adds: P K Mittal and V K Mittal promoted Ispat Industries (IIL) is planning to set up an iron ore pellet plant at Visakapatnam.

"We have firmed up plans for an iron ore pellet plant at Vizag with a capacity of two to three million tonne. We are negotiating for foreign technology, and we will shortly finalise the technology partner," Ispat chairman P K Mittal told reporters today after the 21st AGM here.

Asked about the cost of the project, Mittal said the company was working on the details.

A company official, however, said the three million iron ore pellet capacity plant would cost around Rs 800 crore and the project would be completed in 30 months from the zero date.

The project would be promoted through a SPV, but its financial details were yet to be firmed up.

IIL might also enter a mining venture with the initial target of captive consumption. "We have formally submitted bids for iron ore mines with a few state governments, but I cannot reveal names," Mittal said.