NINL to go ahead with pig iron production by Dec

Dilip Bisoi

Bhubaneswar, Nov 20: With the country’s largest trading house, MMTC Ltd, at the helm of affairs, Nilachal Ispat Nigam Ltd (NINL) is planning to go ahead with its pig iron production even though its met coke plant -KMCL- is yet to be ready.

NINL, a joint venture company floated by MMTC and the Orissa government-owned Industrial Promotion & Investment Corp Ltd (Ipicol), is setting up a one million tonne integrated steel plant at Dubri in Orissa’s Jajpur district.

“The plant will be commissioned by the end of December 2001,” said the MMTC chairman and managing director SD Kapoor.

The MMTC chief said that the first phase of the plant will be operationalised with coke imported from China. In the first phase the plant will produce pig iron and slag, he said, adding that there will be no difficulty in marketing the products. While the slag will be consumed by local cement units, the pig iron will be sold in global and domestic markets.

According to him, MMTC which has vast experience in marketing abroad, will play a key role in the pig iron exports. He said that about 20 to 25 per cent of the pig iron will be sold in global markets.

Mr Kapoor said that the civil work for the project has been completed and the testing of equipment is in progress. The stove heating at 700 degree Celsius temperature has been done successfully. In fact, the commissioning of the plant was scheduled in August 2001. “It was delayed due to the heavy monsoon and floods this year,” the MMTC chief explained.

For the Rs 900-crore steel plant with a debt equity ratio of 1:2, MMTC has provided an equity support of Rs 150 crore, the state government through Ipicol has chipped in Rs 75 crore while the equipment suppliers have contributed Rs 45 crore. Industrial Development Bank of India (IDBI), the lead financier, has arranged the debt component of the project.

For the Rs 250-crore KMCL project, MMTC has provided Rs 40 crore and the state government Rs 25 crore towards equity.