The KIOCL Ltd, the public sector exporter of iron ore and pellets, is planning to set up a 300,000 tonnes per annum coke oven plant through a non-recovery route with 25 Mw captive power plant at a cost of Rs 452 crore in Mangalore.
“The board of directors has approved the proposal to set up the new plant at our blast furnace unit in Mangalore. The project is intended mainly for supply of low ash metallurgical coke for the existing blast furnace and the surplus coke would be sold in the market,” K Ranganath, chairman and managing director, KIOCL said.
The project also envisages generation of 25 Mw electricity by utilising the sensible heat of hot flue gases from the ovens. The part power generated would be consumed in blast furnace and the balance in the adjacent pellet plant. Surplus power, as available, if any, will be wheeled to the grid depending upon the comparative advantages, he said in his address to the annual general meeting, here today.
The cost of the project will be funded with a debt : equity ratio of 1:2. KIOCL has already initiated the action for getting the necessary clearances from the ministry of environment and forests (MoEF) and KSPCB for the project. Parallely, action is being taken for the appointment of a consultant for providing engineering services for the project.
He said the KIOCL board has also agreed in principle to the formation of a joint venture between KIOCL and RINL towards setting up a ductile iron spun pipe (DISP) plant and oxygen plant among others under forward and backward integration in blast furnace unit.
“A detailed project report for setting up of DISP plant of 100,000 tonnes per annum capacity to produce pipes of sizes ranging from 100 mm dia to 1,000 mm dia. at our blast furnace unit has been prepared by Mecon Ltd and the same will be placed before the KIOCL Board in the forthcoming meeting for approval and implementation,” Ranganath said.
As per the DPR and the market study report, there is good market potential for this value-added products. KIOCL has to implement the same on a fast track basis in order to reap the benefits. Statutory approvals are in place for the project.
To facilitate the movement of inward goods for the plants without any problems, the company is proposing to set up bulk material handling and permanent railway siding system at Mangalore for a capital investment of Rs 303 crore. Land required for the said projects has already been acquired and registered in the name of KIOCL Ltd.
The company has already obtained necessary clearances from the MoEF and Karnataka State Pollution Control Board for the project. However, the board’s approval is awaited for the project, he said.
For year-ended March 31, 2011, KIOCL has reported a net profit of Rs 76.2 crore, showing a year-on-year growth of 143 per cent on a turnover of Rs 1,803.46 crore, a year-on-year growth of 81.67 per cent.
