Ispat plans Rs 10,000cr domestic expansion

Ispat Industries is planning to invest about Rs 10,000 crore within five years to ramp up domestic production, and is also planning to expand overseas through capacity expansion and backward integration.

"Ispat Industries (IIL) and its parent company, Global Steel Holdings, are working on plans to expand operations - both in India and overseas. We would be ramping up production at the Dolvi plant from 3 million tonne to 3.6 million tonne per annum," Anil Surekha, executive director (finance), Ispat Industries said.

He said the company's domestic expansion plans include building a one million tonne per annum (MTPA) coke oven plant and a 4.5 MTPA coke pellet plant (likely in Visakhapattanam).

"We would be requiring Rs 3,000 crore for ramping up the Dolvi plant's capacity from 3.6 million tonne to 5 million tonne by 2011-12," he said.

Surekha said IIL's proposed 2.8 million tonne plant plant in Jharkhand would require an investment of about Rs 5,750 crore, but fructification of the project would depend on availability of iron ore through captive mines, which was indicated to the company by the state government in an MoU.

"IIL's parent company Global Steel Holdings is exploring the possibility of projects overseas for capacity expansion and backward integration to ensure a perennial source of raw materials and strike business synergy  in various parts of the world," he said.