Visakhapatnam Steel Plant (VSP) is looking at an expansion programme. The VSP management has sent a preliminary proposal on expansion to the steel ministry for its approval.
The expansion plan includes augmenting the plant capacity to 7 million tones by 2011-12 from existing 3 million tones and to become a 10 million tonne world class integrated steel plant by 2019-20. Last month, the union steel minister laid the foundation for Rs 320 crore fourth coke oven battery in the VSP, as part of the expansion program.
During the current year, the company expects to achieve Rs 4800 turnover with a net profit of Rs 400 crores. Encouraged by the improved performance at VSP, the present management has scripted new vision and objectives, and designed the expansion plan.
Currently, VSP is running at 3.9 million tonne hot metal capacity, as against 3.4 million tonnes installed capacity. Besides the expansion, the management is considering introduction of value-added products like special steel to meet the requirements of railways, automobiles and construction sectors.
VSP desires the value-added product capacity at 25 per cent of the total production, which will give better margins.
