Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) has made an announcement that it is planning to set up a beneficiation plant, pelletisation plant as well as a steel mill at Bayyaram in Khammam district once the iron ore mines are allotted by the State Government, according to a press release issued here.
The announcement made by Chairman and Managing Director A.P Choudhury here on Thursday assumes significance in view of the raging controversy over the proposed allotment of 5,300 hectares of iron ore mines to RINL by the State Government at Bayyaram and two other places in Telangana area. Hailing the announcement of the State Government in deciding to allot the iron ore mines in the Telangana region, the CMD thanked Chief Minister N. Kiran Kumar Reddy and urged him to issue a Government Order as early as possible and send the proposal to the Union Ministry of Mines for approval.
Scientific survey
He said RINL would take up a scientific survey of the allotted area and ascertain the quantity and quality of iron ore available in the area. After that, he said, RINL would take up steps to set up an iron ore beneficiation plant, pelletisation plant and steel mill in a phased manner.
He said RINL had drawn up an ambitious corporate plan to expand to 20 mtpa in phases by 2025, which would make Visakhapatnam Steel Plant the largest in a single location in the country.
“In line with the plan, RINL is on the verge of completion of its expansion to double its capacity to 6.3 mtpa and to 7.3 mtpa through modernisation and upgradation. Several units including blast furnace in the ongoing expansion have been commissioned and are in the operation.
From the new blast furnace over 1 million tonnes of hot metal has been produced, and the remaining units of expansion are under advanced stage of commissioning to be progressively completed by 2013-14.”
RINL is one of the major integrated steel plants operating without any captive iron ore and coal mines. For iron ore security, RINL has applied for seven mining leases in Andhra Pradesh starting from 2005. RINL has also signed an MoU with the Government of Andhra Pradesh with a commitment for an investment of Rs 42,400 crs in the State.