Ispat seeks more space at Vizag port

Ispat Industries Limited (IIL), which operates a 3-million tonne integrated steel plant at Dolvi in Maharashtra, has requested the Visakhapatnam Port Trust to allocate additional storage space in the ore handling complex here.

The company has a tie-up with state-owned National Mineral Development Corporation (NMDC) for supply of iron ore from Bailadilla mines. It is planning to raise its capacity to five million tonnes over the next two-three years and is, therefore, looking for additional storage space to stock iron ore.

Iron ore supplies to IIL from NMDC have also kept on increasing over the years. While NMDC supplied 1-1.3 million tonnes of iron ore to IIL in 2004-2005, the same increased to 2 million tonnes by 2005-2006. Ispat uses the Vizag port for onward supply of ore from Visakhapatnam to Dharmata, which is one km from Dolvi.

NMDC, which was cold to IIL's request for additional iron ore supplies from its Bailadilla mines in view of its export commitment to Japan, had to relent following a directive from the Union government, which felt that local steel plants should get precedence in the matter over foreign clients.

The state-owned corporation till recently used to set aside 4-5 million tonnes of iron ore every year for exports.

IIL informed Vizag port officials that NMDC had agreed to supply additional quantities of iron ore and wanted an additional one lakh tonne storage capacity area. From this financial year onwards, IIL will take about 3.7 million tonnes of iron ore from the mines.

"We have already allotted an area having the capacity to store 1.54 lakh tonnes to IIL at the port ore handling complex. We have received its fresh request and may allot additional storage area to IIL as it gives additional cargo and revenue to the port," Y Jayanthi, director (research and planning), Vizag port, told Business Standard.