VISAKHAPATNAM: Union Steel Minister Beni Prasad Verma on Tuesday directed the management of Rashtriya Ispat Nigam Limited to expand the capacity of Visakhapatnam Steel Plant by four million tonne immediately.
After a review in New Delhi, the minister appreciated RINL's efforts in achieving highest-ever turnover of Rs.11,517 crore during last year registering a growth of eight per cent over the previous year.
The minister lauded the progress of ongoing expansion project and asked RINL to launch next phase of expansion to add another four million tonne capacity immediately. This will bring an investment of Rs 22,500 crore. In next phase of expansion RINL proposes to diversify in flat products with value added steel including seamless tube of higher diameter and electrical steel that is not made in the country. The product mix of RINL after next phase of expansion will be a unique basket catering to the requirements of varied discerning customers.
Regarding securitisation of raw material, RINL has acquired 51 per cent stake in M/s Eastern Investments Limited, the holding company of Bird Group of Companies which will benefit them on account of mineral assets of Orissa Minerals Development Company and Bisra Stone Lime Company.
The company has intensified its efforts for obtaining mining leases for iron ore mines and 23 applications have been filed in various iron ore-rich States. The Minister after listening to the presentation made by RINL Chairman-cum-Managing Director P.K. Bishnoi mentioned that Ministry of Steel was already pursuing with various States for early grant of mining leases to RINL. Mr. Bishnoi said RINL could perform well during 2010-11 by operating the plant at above 100 per cent of the rated capacity for the 10th year in succession. The value added steel component in the total production grew to an all-time high of 79 per cent during 2010-11 and RINL was working towards similar performance in this year as well.
Cost reduction
A release issued by RINL stated here that continuing its supremacy as the lowest specific water consumption steel plant amongst the Indian steel industry the company was focusing on cost reduction.
Through cost reduction measures, a saving of Rs. 150 crore was achieved which was of some help in partly off-setting rising iron ore and coke input cost. Capital expenditure was the highest at Rs. 2,902 crore in a year which was achieved by expediting the expansion of 6.3 million tonne work.
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