Visa Steel to pump Rs 1,146 cr in Orissa plant

Unperturbed over the fall in steel prices, Kolkata-based Visa Steel Ltd will pump Rs 1,146 crore in its proposed 1.5 million tonne capacity in the Orissa Steel Plant within the next two years to start full-fledged commercial production by December 2007.

"We have already grounded an investment to the tune of Rs 250 crore for our 1.5-million tonne capacity Kalinganagar plant. We are committed to invest Rs 1,146 crore by 2007," Visa Group Chairman Vishambhar Saran said here today.

Visa Group has proposed to invest a total Rs 1,600 crore for its Kalinganagar Steel Plant, where the blast furnace has been commissioned in March this year. "We are implementing the project in two phases with the first phase having a capacity of 0.5 million tonne scheduled to go on stream by 2006," Saran said.

The integrated steel and stainless steel plant in Orissa will have features of coke ovens and ferro chrome furnace. The company would capture 25 per cent of Indian stainless steel segment soon after it starts commercial production, he said.

"We are among three to four companies, which are in stainless steel segment. Since all other companies are away from these strategic advantage we are not worried about the consumption of the product," he said.