Pellet maker KIOCL said Monday it is planning to sign a memorandum of understanding (MoU) with Steel Authority of India Ltd (SAIL) to set up a pellet plant under a joint venture (JV).
KIOCL has already approached SAIL in this regard, confirmed a source.
In a statement, KIOCL said the company has already diversified in the field of O&M services (operation and maintenance) and proposes to expand its operation in other parts of the country by setting up new pellet plant which is requirement of the day.
KIOCL Ltd, under the Steel Ministry, has an iron oxide pellet plant with a capacity of 3.5 million tonne per annum at Mangaluru in Karnataka.
"KIOCL CMD Subba Rao has expressed that keeping the above back ground and experience in view and diversify/expand KIOCL's operation by making use of the emerging opportunities. KIOCL has already signed an MoU with RINL to set up a 2 MTPA pellet plant at Vizag. On similar lines, KIOCL is planning to sign an MoU to set a pellet plant under JV with SAIL," the company said.
Steel maker SAIL did not comment on the development.
Rashtriya Ispat Nigam Ltd (RINL), also known as Vizag Steel, is a Public steel producer based in Visakhapatnam.
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