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Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Vizag Steel, will expand capacity to 16 million tonnes per annum (mtpa) by 2025 with an investment of Rs 35,000 crore, a top official said.
P Madhusudan, CMD, RINL, said the present capacity of 6.3 mtpa would be increased by 1 mt by 2018 through modernisation of existing capacities.
"By 2025, RINL has corporate target to achieve 16 mtpa. The current 6.3 mtpa will become 7.3 mtpa through modernisation by 2018. After that, in two phases, we want to grow up to 16 mtpa," Madhusudan told PTI.
"Each million tonne would cost about Rs 4,000 crore. Another 9 mt to be taken in two phases would cost about Rs 35,000 crore," he said.
He said the capex for the current fiscal is Rs 1,402 crore and the PSU is confident of achieving that.
The steel maker had earlier said it had fixed the target of 5 mt of hot metal, 4.9 mt of liquid steel and 4.3 mt of saleable steel production and turnover of around Rs 18,000 crore.
On the tie-up with Power Grid for making Transmission Line towers, he said the proposed JV would be investing Rs 330 crore in the first phase and a similar amount in the second phase.
The new JV company will set up a Transmission Line Tower (TLT) manufacturing unit in Visakhapatnam.
"The Transmission Tower Unit with an annual capacity of 1,20,000 tonnes will be set up with an investment of around Rs 330 crore in the first phase. In the second phase, it is planned to have rolling mills which will enhance the total capacity to 1,80,000 tonnes per annum of transmission line tower parts," he explained.
The CMD further said the JV will have the benefit to procure black angles from RINL.
Consultant MECON has already prepared the Techno Economic Feasibility Report. Land has already been earmarked for the project by RINL.
