Karnataka Steel & Mineral Industry

[Krishnamoorthy K]

New Delhi, Sept. 29: State-owned KIOCL Ltd is looking at iron ore mines in Africa as part of its expansion plans and to address its resource security.

“It is in a preliminary stage. We have received some proposals from owners of land in Mozambique that contain magnetite deposits. We are sending a team of officials next week to look at these deposits,” said Mr K. Ranganath, CMD, KIOCL Ltd.

He was speaking to reporters after the Steel Minister, Mr Beni Prasad Verma, reviewed the company’s quarterly performance.

Further, Mr Ranganath said the company’s proposed expansion plans in India have taken a back seat in the aftermath of disruption of iron ore supplies from NMDC following the ban on mining in Bellary.

The company was looking to set up ductile iron spun pipe plant and install a coke oven battery besides setting up an integrated steel plant.

KIOCL relies on NMDC for its iron ore supplies, which are converted into pellets at its plant in Mangalore. Despite the challenges on the raw material supplies, the company produced 3.96 lakh tonnes of pellets against the targeted 5.16 lakh tonnes.

Meanwhile, MSTC under the Steel Ministry presented a dividend of Rs 1.97 crore to the Government. The e-commerce PSU mainly deals with disposal of reusable scrap.

MSTC has been recently selected by the Supreme Court to conduct e-auctions of iron ore piled up in Karnataka. MSTC will e-auction 1.5 million tonnes from Bellary and 1 million tonne from NMDC per month.

Business Line

[s.yogendra]

[s.yogendra]

JSW Steel buys 41% of iron ore auctioned

JSW Steel Ltd, the largest producer in India, continues to be the largest buyer of iron ore at e-auctions in Karnataka. The company, which runs a 10-million-tonne steel plant in Karnataka, has picked up 926,000 tonnes of iron ore (with an iron grade of 62 per cent), about 41 per cent of the ore auctioned at the fifth round of e-auctions held yesterday and on Friday in Karnataka.

read full article

[engineer.akash]

NMDC, Severstal sign pact for steel joint venture

HYDERABAD, NOV 12:
India’s largest iron ore miner NMDC and Russian steel maker Severstal signed the Implementation Protocol in Moscow for setting up a joint venture steel plant in Karnataka.

A high level delegation from India, comprising the Minister of Steel, Mr Beni Prasad Verma, the Secretary of Steel, Mr P.K. Mishra, and NMDC’s Chairman and Managing Director, Mr Rana Som, apart from other senior officials, visited Moscow to take the project forward.

The Minister had talks with Mr Viktor Khristenko, the Russian Minister of Industry, during the visit.

The Protocol defines the target initial plant capacity which would be 3 million tonnes of finished steel. It also confirms the intention of NMDC and Severstal to fully meet the joint venture’s captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials.

Until the captive assets are fully developed, NMDC and Severstal would take up the responsibilities to supply iron ore and coking coal to the joint venture from their existing assets or alternative sources, NMDC said in a statement.

Mr Alexey Mordashov, Chief Executive of Severstal, said: “Our joint venture project in India with NMDC provides a good fit with Severstal’s vertically integrated, growth-focused business model”.

Mr P.K.Mishra said: “The joint venture between Severstal and NMDC will be another milestone in India-Russia economic cooperation and will be an important investment for the Indian Steel industry.

The Hindu businessline

[engineer.akash]

NMDC,Severstal final agreement for Karnataka plant next month

NEW DELHI: Steel Minister Beni Prasad Verma today said the final agreement between NMDC and Russian steel major Severstal for jointly setting up a 3 million tonne per annum (mtpa) steel plant in Karnataka would be signed next month, when the Russian Prime Minister will be visiting India.

"The Russian Prime Minister is scheduled to visit India in December. At that time, the final agreement between NMDC and Severstal would be signed for the steel plant," Verma, who recently came back from Russia, told reporters here.

India's largest iron ore miner NMDC and Russia's second biggest steel maker Severstal had, in December last year, signed a MoU to form an equal joint venture for setting up a steel plant in the Southern state.

During Verma's three-day visit to Russia, starting November 8, the two firms signed an 'Implementation Protocol' to take the venture closer to the signing of the final agreement.

The protocol suggests that NMDC and Severstal would fully meet the joint venture's captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials.

"Until the captive assets are fully developed, NMDC and Severstal take the responsibilities to supply, respectively, iron ore and coking coal to the JV at market basis from their existing assets or alternative sources," NMDC had said.

NMDC Chairman and Managing Director Rana Som said total capital expenditure for the proposed facility would be Rs 19,000 crore and it would be funded with a 70:30 debt equity ratio.

Som also said the company was in the final stages of negotiation with two mining companies -- one in Russia and the other in Mozambique -- for acquiring of stake.

However, NMDC has dropped the idea of buying stake in coking coal asset of another Russia company Vincy Coal.

[engineer.akash]

NMDC-Severstal steel plant likely to be commissioned by 2017

The 3-million tonne plant entails an investment of $4 billion.

The proposed steel plant to be set up jointly by state owned National Mineral Development Corporation (NMDC) and Russian behemoth Severstal in Karnataka may be commissioned by 2017.

The 50:50 joint venture project will come up over 2,800 acres of land at Bellary in the Southern state.

“The land has already been notified and once the final agreement between the two companies is signed next month, the process of land acquisition would start and we hope that the plant is commissioned by 2017,” NMDC CMD Rana Som told Business Standard here.

The plant is estimated to cost $4 billion and would be funded with 70:30 in debt equity ratio by the Indo-Russian partners.

“While, this would be the biggest Russian investment in the Indian steel sector, it would also bring the latest steel making technology to our shores and assign coking coal linkage to the project,” So added.

On its part, NMDC would assign iron ore linkage to the proposed three million tonnes (MT) annual capacity plant.

Earlier this month, NMDC and Severstal had signed ‘implementation protocol’ during steel minister Beni Prasad Verma’s visit to Moscow. In December 2010, the two companies had signed MoU to form an equal joint venture for the plant.

India, the world’s fourth largest steel producer, is planning its capacity rise to almost 200 MT by 2020.

At present, China is the global leader in steel production followed by USA, Russia and India. By 2020, we would overtake USA and Russia. By 2012-13, India’s installed capacity of steel is likely to be 110-120 MT.

[engineer.akash]

Karnataka to extend support for steel players

Steel, pig iron and sponge iron manufacturers in Karnataka can now heave a sigh of relief and hope for better days ahead as the state government has agreed to widen the window for transporting the iron ore purchased at the electronic auctions.

At present, the Monitoring Committee, appointed by the Supreme Court to oversee the auctions, has restricted the transportation of iron ore to 12 hours, from 6 am to 6 pm.

“The Karnataka steel manufacturers association had requested the state government to permit the movement of iron ore round the clock. Considering that the delay in the transport of iron ore is affecting production, the committee has agreed to extend the timings from the present 12 hours to 16 hours,” Vinod Nowal, chief executive officer and director, JSW Steel Limited, said.
He said the matter was before chief minister, D V Sadananda Gowda, for his approval. “Unless the government allows transportation of the raw material round the clock, it would be difficult to maintain the production levels and we cannot shut down the furnaces,” he said.

Nowal said of the 4.4 million tonne iron ore won by JSW at the e-auctions, the company could hardly move 1.2 million tonne due to the restrictions. Another 3.2 million tonne iron ore continues to lie at the various mine heads. This has affected the company’s production which is now 50-60 per cent of the installed capacity of 10 million tonnes. The company was hoping to restore the production levels to 80 per cent by the end of October.

As per the new system drawn up by the state’s Department of Mines and Geology (DMG), the successful bidders are issued bulk permits after they pay the royalty, forest development tax and VAT for the ore won at the auctions. Subsequently, they have to get their respective holograms and tripsheets from the deputy director of mines and geology before loading the ore. They can then secure the forest permit from the department of forests before moving the material to their respective steel mills.

The monitoring committee has so far facilitated the auction of 7 million tonnes of iron ore of the 25 million tonnes stockpile lying at the various mines, as allowed by the apex court.

However, he said, the stockpile would not be sufficient for the steel companies to operate their plants in the long run. There is hence a need to resume regular mining in the three districts of Bellary, Chitradurga and Tumkur. The stockpiles are expected to last another six months.

“It is the right time to resume regular mining and unless that happens we cannot ensure non-stop flow of the raw material to steel mills. But, it depends on the state government which is yet to submit the rehabilitation and resettlement plan to the apex court,” Nowal added.

[engineer.akash]

Arcelor Mittal to begin steel plant construction in K'taka

Arcelor Mittal is gearing up to start the construction of its Rs 30,000 crore steel plant in Karnataka, reports CNBC-TV18’s Vineetha Athrey quoting sources.

It is learnt from sources that the company has chalked out plans for the first phase of its 6 MTPA plant in the state. The construction will happen in two phases of 3 MTPA each.

Further, Arcelor Mittal is awaiting official land transfer from the Karnataka government. The government has already acquired 1,827 acres of land towards the first phase which will be officially transferred to the company in two-four weeks.

The company is looking to do some basic construction to indicate land possession about three-four months after taking over the legal possession of the land. The phase one construction is likely to begin in a year as the company is awaiting several clearances including environmental clearances which are expected to come through in about a years time.

Arcelor Mittal has already acquired 2,600 acres of land, it has paid Rs 178 crore as compensation to the farmers. Also, the company has deposited about Rs 268 crore with the Karnataka government. This amount will be used towards compensation.

In a response to CNBC-TV18 query the company said, "Karnataka Industrial Areas Development Board (KIADB) has initiated the transfer process and are securing the requisite permissions to initially handover 1,800 acres to us. We do not envision any delay in construction after land is transferred and necessary resources secured towards building a 6 MTPA plant in Karnataka."

[engineer.akash]

Jindal Aluminium to spend Rs 800cr for two plants in Karnataka

Jindal Aluminium will invest Rs 800 crore to set up two plants to make aluminium sheets and foils, and produce powder coated and anodised materials.

"We are setting both the plants in Karnataka. Work on the first plant, near Bangalore, for manufacturing of aluminium sheet and foils has already started. We are investing Rs 500 crore outlay," Jindal Aluminium CMD Sitaram Jindal told PTI.

The second plant would also come up near Bangalore for production of powder coated and anodised materials with an investment of Rs 300 crore. However, the ground work on the plant would start only after the first plant gets operational in April next year.

While aluminium sheet and foils are used for packaging applications, including food and beverage containers; powder coating is a durable method of providing a decorative finish to metals. Anodising is an electrolytic passivation process used to increase the thickness of the natural oxide layer on the surface of metal parts.

Jindal Aluminium claims to be the largest manufacturer of aluminium extrusion profiles in India commanding around 25% market share. It has 70,000 tonnes per annum installed capacity at its lone plant in Bangalore. However, due to poor demand, the company could only produce 55,000 tonnes aluminium extrusion profiles last fiscal.

Jindal said that the aluminium sheet and foil plant would have the capacity to produce 50,000 tonnes a year and provide direct jobs to 700 people. Jindal Aluminium would spend Rs 300 crore from internal accruals and the remaining from a foreign bank to fund the project.

It would not require any funding requirement from outside for the plant to produce powder coated and anodised materials, he said, adding that cash generated from its existing business would take care of that.

"We have land in possession for the second plant. It will likely to go on stream by June-July, 2013," he said, adding that there was a huge demand for such products overseas.

Jindal said the company had clocked Rs 800 crore turnover last fiscal and after the operationalisation of these plants, its topline would likely to go past Rs 2,000 crore by the end of 2013-14 fiscal.

BS

Belgaum has a better ecosystem for Aluminium plants with HINDALCO already established there with Aluminium resources available in the vicinity.No idea why Jindals chose Bangaluru.

[engineer.akash]

Gallantt Metal sees dent in profits on high imported coal prices

In an interview to CNBC-TV18, Mr Nitin Kandoi director of Gallantt Metal talks about the latest happenings in his company and the road ahead.

Below is an edited transcript of the interview.


Q - Now you have got the clearance for the pellet plant in Karnataka but due to the ban on mining there, when do you expect this to come on-stream?

A - We see the plant in Hospet coming up by mid 2013. The restrictions on iron ore mining is a tentative phase, it's not going to stay for a long time because, there are a lot of steel plants which have come up in the South India based on the mines there. We see this as a temporary phase and expect it to be clear before our plant is due for commissioning.

Steel Guru

[engineer.akash]

JSW Steel orders another continuous slab caster from Siemens VAI

Steel producer JSW Steel Ltd has ordered a new continuous slab caster from Siemens VAI Metals Technologies for its steel works in Toranagallu, Karnataka State, India.

The continuous slab caster will have an annual production capacity of 1.4 million tonnes and is to be commissioned in the middle of 2013.

The new continuous slab caster (caster no 4, in steelworks no 1) for the JSW Steel Works in Toranagallu will be able to cast slabs with thicknesses between 220mm and 260mm and widths between 800mm and 1,600mm. It will produce carbon steel, micro and low alloy, as well as HSLA steels, which will be further processed into sheets, strips and pipes.

The new continuous slab caster will be equipped with DynaGap Soft Reduction, like caster no 3 which was supplied by Siemens and then modernized in 2009. This solution enables the taper and thickness to be controlled automatically at every point of the strand guiding system to create the basic conditions for high internal slab quality. This will enable the casting of slabs from high quality, API grades and other micro alloyed steels.

The design and equipment of the new continuous slab caster are similar to those of caster no 3, thus simplifying operation, maintenance and spare part stocking. Smart Segments are used to contain the strand. A number of technology packages ensure an optimal casting process, which produces slabs with both high surface and internal quality. The packages include the Mold Expert breakout detection system, the LevCon mold level control, the DynaFlex mold oscillator and the VAI-Q inline quality assurance system.

JSW Steel is currently operating three continuous slab casters in steel works no 1 in Toranagallu. Casters nos 1 and 2 have been in production since 1999 and Siemens recently retrofitted them with mold level control and breakout prediction systems. Caster no 3 has been equipped with the latest equipment since it went into operation at the end of 2006, and since modernization in 2009 was the first plant in India to be equipped with DynaGap Soft Reduction.

The new continuous slab caster will increase the casting capacity of steel works 1 in Toranagallu to around 4.2 million tons of slabs per annum. The construction of the fourth casting plant is part of JSW Steel’s broad range expansion project.

Source

[engineer.akash]

Xinxing Ductile Iron Pipe to expand iron ore pellet capacity in India

Chinese steel pipe producer Xinxing Ductile Iron Pipe Co. a subsidiary of Xinxing Cathay International Group, has announced a plan to invest RMB 9 billion ($1.42 billion) to expand the iron ore pellet production capacity of its joint venture in the state of Karnataka, India.

Xindia Steel Co., jointly established by Xinxing Ductile Iron Pipe and Chinese metals and mineral trading company China Minmetals Corporation, was commissioned in August this year with an annual production capacity of 800,000 mt of iron ore pellets. In line with their latest investment plan, in the coming two to three years, Xinxing Ductile Iron Pipe and China Minmetals aim to expand the annual iron ore pellet production capacity of their Indian joint venture to 3 million mt.

http://www.steelorbis.com/steel-news...dia-646272.htm

[engineer.akash]

SAIL may choose Kobe Steel tech to modernise VISL plant

BANGALORE, DEC 15:
Steel Authority of India Ltd is exploring Kobe Steel's technology to modernise Visvesvaraya Iron and Steel Ltd (VISL) plant located in Bhadravati, Karnataka.

At present, SAIL is in talks with Japanese steel maker to float a joint venture to increase its steel output. “The Japanese steel major is doing techno-feasibility study of all our plants, once we get the report, it will help us devise a strategy for VISL plant modernisation,” said Mr C.S. Verma, Chairman, SAIL.

“VISL plant in Bhadravati is well suited for making alloy steel and speciality steel. Also it is located close to the port and is well suited for exports,” he added.

MODERNISATION STRATEGY

A multi-pronged strategy is being put in place for VISL's modernisation. “Under short-term measures, without much capital investments, the deficiencies in the operations would be eliminated, which would give a fillip to the plant. Here, Rs 80-90 crore is to be spent to upgrade the existing machinery to commence steel production immediately,” said Mr Verma.

“Under long-term measures, it is planned to build proper capacity to work at full efficiency by capacity addition. Under this plan, Rs 600-700 crore will be spent to bring in modern steel making technology and machinery for exports,” he added.

After the long-term measures are implemented the capacity of saleable steel is expected to go up to around 320,000 tonnes a year.

For More

[engineer.akash]

NMDC, Russian firm to set up 3m-tonne steel plant in Bellary

NEW DELHI, Dec 15, DHNS:

India’s state-owned NMDC Limited and Russia’s OAO Severstal may on Friday sign the final agreement to float a joint venture company in order to set up a three million tonne per annum steel plant in Bellary in Karnataka.

The NMDCL-Severstal agreement is one of the business deals likely to be clinched during Prime Minister Manmohan Singh’s visit to Moscow to give a boost to bilateral economic relations, which, both the countries agree, are still far below the potential.

The NMDCL and Severstal signed a MoU in December 2010 to jointly set up the steel plant, which would require a capital expenditure of Rs 19,000 crore and would be funded with a 70:30 debt equity ratio.

The prime minister reached Moscow on Thursday. He and his Russian counterpart President Dmitry Medvedev are likely to hold the 12th annual summit on Friday.

Before leaving New Delhi, Singh said that he and Medvedev would discuss “mechanisms to further expand our bilateral cooperation, particularly in the trade, economic and commercial fields.” The two leaders will also jointly address the business leaders from both the countries after the summit on Friday. Incidentally, Russia is also likely to formally join the World Trade Organisation on Friday. Foreign Secretary Ranjan Mathai told journalists that the Joint Study Group set up by New Delhi and Moscow to discuss about the possibility of a bilateral Comprehensive Economic Cooperation Agreement or CECA “would be able to make very concrete progress” after Russia joined the WTO.

To make it easier for business people to visit each other’s country, Russia and India put in place a simplified visa regime that came into effect on December 1 last. New Delhi and Moscow are also studying possibility of setting up a Joint Investment Fund.

The volume of the India-Russia bilateral trade is expected to be around US $ 9 billion this year, but New Delhi and Moscow set a target of US $ 20 billion by 2015 and identified the key sectors like pharmaceuticals, IT, food products and gems for emphasis to attain the target.

http://www.deccanherald.com/content/...rm-set-up.html

[engineer.akash]

Bharat Mines plans Rs 6,700-cr steel unit

The Bellary-based Bharat Mines & Minerals (BMM) has chalked out plans to set up a greenfield steel manufacturing plant at Hospet in Karnataka at an estimated investment of around R6,700 crore. The plant is expected to have an annual steel manufacturing capacity of around 2.2 million tonnes.

“We have achieved financial closure for the project,” said Dinesh Singhi, managing director BMM. “The total investment of Rs 6,700 crore in the project is being funded through a mix of debt and internal accruals.” Singhi added that a consortium of fourteen banks led by the State Bank of India has extended a loan of Rs 4,200 crore to the company for this project. Other banks in the consortium include Canara Bank and Punjab National Bank.

The greenfield steel-manufacturing unit would be spread across 3500 acres and the plant is expected to be fully functional by 2014. Greenfield projects refer to entirely new projects.

Singhi added that BMM expects to garner revenue of around Rs 2,000 crore during the current financial year and expects the company’s revenue to increase by 25% over the next couple of years.

The company already owns and operates a pelletisation plant, beneficiation plant, sponge iron plant, induction furnace and a steel rolling mill. BMM is also diversifying into cement production and its cement manufacturing plant is set to come up at Anantpur in Andhra Pradesh.

[s.yogendra]

[s.yogendra]

Rs 30,000 crore Posco project on, says Karnataka Minister

The Karnataka government is reviving Korean steel major Posco's plans to set up a steel plant in the state.

In July this year, the ex-chief minister BS Yeddyurappa had halted the project citing farmer protests; but the industries minister has now confirmed the project is on and land acquisitions issues will be resolved soon.

State Industries Minister, Murugesh Nirani has said that the project will be set up in Halligudi, Gadag district and the opposition from locals across the board has been nearly addressed

“Already about 3,180 acres of land have been identified and preliminarily notification is over. About more than 90 per cent farmers have agreed to give the land to Posco. Farmers and government department have agreed for the price also,” Nirani told NDTV Profit

Posco's troubles started this year when former chief minister, B S Yeddyurappa halted the process of building the plant in the state after stiff opposition from local farmers in Halligudi in Gadag district.

Ironically, it was Yeddyruappa himself who proudly announced the Rs 30,000 crore Posco project during the Global Investors Meet in 2010.

Posco's integrated 6-million steel plant comes in at an investment of 32000 crore rupees. It has already paid Rs 130 crore to the state industrial board to carry out land acquisition. But due to the opposition, Bagalkot and Bijapur districts were considered as alternatives

However, despite the confidence of the Industries Minister, the government will need to rework their strategy to avoid yet another confrontation with farmers. But Posco can breathe easy for now as their project gets back on track again.

http://profit.ndtv.com/News/Article/...inister-294672

[Krishnamoorthy K]

Hubli, Dec 24, DHNS:

Farmers have approached the High Court of Karnataka on not acquiring their land for the Posco project, according to Major and Medium Industries Minister Murugesh R Nirani.

“Eighty to 90 per cent of the farmers are willing to give their land for the steel plant. They have submitted their land records to the department. A final decision will be arrived at after discussing the matter with Chief Minister D V Sadananda Gowda and his predecessor B S Yeddyurappa,” Nirani said here on Saturday.

The minister was addressing a press meet after an interaction with the representatives of micro and small industries organised by the Karnataka Small Scale Industries Association.

Consent

Nirani said land would be acquired for the project only with the consent of all the stakeholders. There will be no forced acquisition of land and the government would explore other options if farmers are not willing to part with their land.

During the interaction, some farmers from Halligudi (the proposed site for Posco plant) declared that they were willing to give their land for the project. They blamed the media for not reflecting their willingness to give land.

They claimed that of the 536 farmers in Halligudi and Jantli-Shirur villages, 439 have expressed their willingness to part with their land.

DHNS

[s.yogendra]

Steel companies seek early resolution

Iron and steel companies in south India have approached the Supreme Court again, seeking permission for “clean” iron ore mining companies to restart operations in Karnataka.

“The stockpile of 25 million tonnes put up for sale through e-auction would last till April 2012. To ensure continuous supply of to steel mills, it’s essential to restart the mining by at least clean mining companies. So, we have made a request to the apex court through the Karnataka Iron and Steel Manufacturers Association (Kisma) to give permission for clean mining companies,” Vinod Nowal, director and chief executive of JSW Steel, said.

The Supreme Court, in its order on July 29, had ordered suspension of all mining activities in Bellary district. On August 26, the court banned mining in Chitradurga and Tumkur districts. So, 16 steel mills, including JSW Steel, Kalyani Steels Ltd, Mukand Steels Ltd, Kirloskar Ferrous, VISL Bhadravathi, MSPL Ltd, BMM Ispat Ltd and Sathavahana Ispat, are facing shortage of iron ore.

Nowal said Kisma would make another appeal on January 20, when the apex court restarts hearing the case. “There is a need for an urgent action in this regard, as the Karnataka government is yet to submit mine-wise R&R (resettlement & rehabilitation) plan to the court. It would be helpful for the steel industry if the court permits recommencement of mining in selected mines in Karnataka, as the state government may take more time to submit the plan,” Nowal said.

The state government has appointed the Indian Council of Forestry Research and Education (ICFRE) to prepare the plan for each mine in the three districts. It is said ICFRE may take up to six months to complete the plan.

Till mid-December, the monitoring committee appointed by the court has conducted 16 e-auctions and put up 14 mt of iron ore for sale. Of this, 10 mt were sold and JSW Steel picked up 6.6 mt. JSW’s Vijayanagar plant bought 5.9 mt, the Salem plant took 448,000 tonnes and JSW Ispat won 304,000 tonnes. However, the three companies got a delivery of only 2.7 mt.

“Due to logistical reasons we could take a delivery of less than half of what we bought at the auctions. The state government has allowed the movement of iron ore from 6 am to 10 pm and this restriction has affected our production schedule. It would be difficult for us to resume normal production without the continuous movement of ore,” Nowal said.

He said the company would resume normal production by the end of January. Presently, it has achieved a capacity utilisation of 80 per cent at its 10-mtpa steel plant at Toranagal in Bellary. Kalyani Steels, which has shut one of its three furnaces in Hospet, has appealed to the Central Empowered Committee and the apex court to impose a penalty on erring miners and meanwhile allow it to restart.

R K Goyal, managing director of Kalyani Steels, said the company was running with just one-month stock of ore. “The stock of calibrated ore is running out at the mines and if the court does not allow resumption of mining immediately, then we may have to close down our plants by February,” he said.

http://www.business-standard.com/ind...ution-/459958/

[s.yogendra]

MPIL Steel setting up Rs 170-cr plant in K'taka

MPIL Steel Structures Limited, a Mumbai-based turnkey solution provider for metal building products and integrated structural steel fabrication, is setting up a steel fabrication plant in Bellary district of Karnataka with an incremental investment of around Rs 170 crore to be made over two years.

The facility, coming up on 21 acre, would have an initial annual capacity of 25,000 tonne, which would be scaled up to 100,000 tonne in the next two years. The plant would start production from April 2012, Priyanka Gupta, executive director of MPIL Steel Structures, told Business Standard.

“We have already made an initial investment of Rs 75 crore to kick start the work on the project. The entire project will be funded with 40 per cent promoters’ equity and the remaining through traditional debt from the State Bank Group,” she said.

According to Gupta, the company intends to leverage the freight advantage that Bellary (situated on the Karnataka border adjoining Andhra Pradesh) offers, besides the abundance of hot-rolled steel in the region.

“The new plant will be making only heavy structural steel and will be catering to the soaring demand by the infrastructure sector, including airports and high-rise buildings, in both the states,” she said, adding the new plant was expected to generate revenues of Rs 250 crore in the first year and become a Rs 500-crore entity by itself once it crosses the 100,000 tonne a year capacity.

The over Rs 200-crore company, which currently has an annual production capacity of 60,000 tonne of structural steel at its Tarapur plant in Maharashtra, is now focusing on exploring steel as a solution for supporting the installation of solar farms and other projects pertaining to renewable energy.

Towards this, the company has recently installed solar panels on its factory rooftop, which optimises captive generation of electricity from solar power and seamlessly integrates with the internal power supply of the factory.

The SMART (Solar Mounted Advanced Renewable Technology) building system, for which Hyderabad-based SuRe Energy Systems is the EPC partner, involves mounting of solar panels on the roof of any pre-engineered building. It can be pre-installed or retrofit. Installation of the roof-mounted solar system costs Rs 18,000 per square metre.

With a separate production line of 1,200 tonne a month for the SMART building systems already in place, Gupta said, the company would now commercially offer this solution in the entire southern belt.

“We are looking at making 18 full-fledged installations in 12 months from now,” she said, adding the solar division, being set up independently, was expected to generate Rs 60 crore in revenues in the next one year.

http://www.business-standard.com/ind...ktaka-/460035/