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The Visakhapatnam Steel Plant is aiming at a capacity of 20 million tonnes to become the biggest steel plant at a single location in the country, according to Mr A.P. Chowdhary, Chairman and Managing Director.
He was speaking at the inaugural of a one-day seminar conducted by the Confederation of Indian Industry here on Saturday to showcase the potential of Visakhapatnam to the ASEAN countries. He said the steel plant was presently expanding its capacity from 3 million tonnes (mt) to 6.3 mt, and it had achieved an important milestone this week by commissioning the third blast furnace in the expansion project.
“The growth of the steel plant will play an important role in stimulating growth of Visakhapatnam in the next decade or so. We do not have captive iron ore mines at present, and we are seeking to acquire captive iron ore mines in the country and also to have stake in coking coal mines abroad.
“We also need funds for future expansion. Therefore, I invite the ASEAN countries to invest and participate in the future growth of Visakhapatnam Steel Plant as well as the city and the district. Visakhapatnam is the most promising area for investment in all respects,” Mr Chowdhary said.
He said the entire region from Visakhapatnam to Kakinada was poised for a quantum jump in industrial growth and the steel plant would play its part in the development of the region. He said that the plant would require Rs 22,000 crore to expand its capacity from 6.3 mt to 11 mt in the next four to five years. To raise the amount, the plant may go in for loans and the debt-equity ratio will be 1:1. The plant had met the cost of the current phase of expansion from 3 mt to 6.3 mt out of its internal accruals.
Mr Lav Agarwal, District Collector of Visakhapatnam, said the region between Visakhapatnam and Kakinada may attract investment of $20-30 billion in the next decade or so.
Ms D. Purandeswari, Union Minister of State for HRD, spoke of the bright prospects of the region. Several delegates from the ASEAN countries participated in the conference.
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