Rashtriya Ispat Nigam Limited (RINL) has lined up a Rs 45,000-crore investment for capacity expansion and modernisation from the current 3.3 million tonne per annum (mtpa) to 11.3 mtpa by 2015. Besides, the navratna PSU evinced interest in buying the MMTC?s stake in Neelanchal Ispat Nigam Ltd (NINL).
Speaking to FE, PK Bishnoi, CMD, RINL said at present the government is in serious discussion for the proposed buyout. ??We have expressed our interest to become a strategic partner in NINL by acquiring MMTC stake. As on date, talks are on with the commerce and the steel ministries to determine the pricing issues and other factors,??’ he said.
NINL is a joint venture company promoted by MMTC and the Industrial Promotion and Investment Corporation of Orissa Ltd (IPICOL), a government of Orissa undertaking. MMTC has 49% stake in the steel unit.
The steel PSU has also proposed to invest Rs 12,000 crore to increase its capacity from 3.3 mtpa to 6 mtpa during this year. Another Rs 7,000 crore has been earmarked for expansion from 6.3 mtpa to 7.3 mtpa along with modernisation with newer technologies. ??We are planning capacity expansion of 11.3 mtpa by 2015 which would entail an investment of another Rs 25,000 crore,??’ he said. When asked about resources, he said, ??We are still debt free as of now. For the proposed expansion, we would be looking at both raising debt and internal accruals,??’ he added.
Bishnoi also added that the PSU has applied for several mining leases in Jharkhand and Rajasthan for setting up pelletisation plants. In Orissa, it has acquired 51% stake in Eastern Investment Limited which has Orissa Mineral Development Corporation (OMDC) and Bisra Stone Lime Company (BSLC). It has also signed an MoU with Kudremukh Iron Ore Company Ltd in Karnataka.
With the increasing costs in iron ore and coking coal costs , RINL feels that prices are bound to fluctuate along with international prices. RINL has been applying for mine allocations and also proposing for joint ventures with various state mineral development corporations for value addition projects.
