Bhushan Steel Orissa project gets under way

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Mumbai, Jan 12: Bhushan Steel & Strips has taken possession of 1,700 acre of land near Dhenkanal district in Orissa to set up a backward integration project for HR coils. The company will firm up its plans for this Rs 3,000 crore project in the next two weeks after the project appraisal by the bankers, Bhushan Steel & Strips chief financial officer Nittin Johari said.

Mr Johari, however, made it very clear that the company had no plans to raise funds through private placements, encashing the current stock market boom. Mr Johari claimed that the company has the lowest equity of Rs 40 crore in the Indian steel industry.

The plant would be set up in three parts over the next 2-3 years, with a sponge iron capacity of one million tonne, billets of 3 lakh tonne followed by a blast furnace, Mr Johari added. The company however continues to await the state government’s response on allotment of iron ore and coal mines in the near vicinity.

The company has appointed MECON, RITES and Wescos as its consultant for providing necessary assistance in engineering of the plant while M/s Lurgi Metalurgi GmbH, Germany will provide basic engineering know-how. Bhushan Steel currently imports 30-40% of its total HR coil requirement while it sources the rest through domestic steel majors including SAIL.