VSP to add 4 MT capacity, state to get Rs 22,500 crore investments

New Delhi, June 22 (INN): The Visakhapatnam Steel Plant would add another four MT capacity immediately, bringing an investment of Rs 22,500 crore to the Andhra Pradesh, as part of the next phase of expansion of Rashtriya Ispat Nigam Ltd, informed Union Minister for Steel Beni Prasad Verma on Wednesday.

The RINL proposes to diversify in flat products with a value added steel including Seamless Tube of higher diameter , Electrical Steel that are 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.

RINL CMD PK Bishnoi informed that the plant has operated above 100 per cent of the rated capacity for the 10th year in succession since 2001. The Plant achieved highest ever turnover of Rs 11,517 Crore during last year, a growth of 8 per cent over previous year.

The value added steel component in the total production grew to an all time high of 79 per cent during 2010-11 and RINL is working towards similar performance in this year as well.

RINL continued its supremacy as the lowest specific water consumption steel plant amongst the Indian steel industry. Through cost reduction measures, a saving of Rs 150 crore was achieved which was of some help in partly offseting rising iron ore and coke input cost.

Capital Expenditure was highest at Rs. 2902 Cr in a year which was achieved by expediting the expansion of 6.3 million ton work. RINL is already in realm of some international bench marks and has taken investment decision to achieve the remaining parameters in the next 2 ' 3 years.

The first stage of expansion of RINL is already in advanced stage of completion and several units are already commissioned. With the integrated commissioning production is planned to be started from September, 2011.

Regarding securitization of Raw material, RINL has acquire 51 per cent stake in M/s EIL, the holding company of Bird Group of Companies which will benefit them on account of mineral assets of OMDC and BSLC.

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 Union Minister mentioned that ministry of steel is already pursuing with various State Govt. for early grant of mining leases to RINL. The Minister appreciated the performance of RINL towards CSR, Environmental Measures as well as Introduction of the Rural Distribution Scheme (RDS).