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Visakhapatnam-based Rashtriya Ispat Nigam Ltd will have conversion units — from semis (semi finished) into finished products — at Ghaziabad in Uttar Pradesh and Alwar in Rajasthan on a wet-lease arrangement.
These two will be RINL's first set of such proposed conversion units to reach out to markets across the country with finished products, ahead of commissioning of stage I expanded capacity.
None of the integrated steel makers have tried this experiment in the country so far, industry observers said. RINL is now preparing for an open tender process.
The processor will have to turn cast billets from Vizag Steel Plant, RINL's manufacturing unit, into 8 mm to 32mm re-bars and structurals of different sizes. VSP will supply cast billets, which will be processed by the units on predetermined conversion charges.
According to the terms of the proposed arrangement, the existing processor will have to dedicate its entire capacity (minimum 6,000 tonnes a month in the past three years). A new investor will require a capacity of at least 72,000 tonnes a year.
The units will have facility to manufacture ingots, bloom and billets at the same location conforming to the Bureau of Indian Standards' specifications.
RINL said it would allow 5 per cent metal loss for converters.
> jayanta_mallick@thehindu.co.in
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