Monnet Ispat is planning to invest around Rs.230 crore at its Raigarh plant in Chhattisgarh to expand the sponge iron capacity to 750,000 tonnes from the existing 300,000 tonnes by the next financial year.

The company will also start mining coal from a mine in Raigarh in Chhattisgarh within next two to three months. Initially, 300,000 tonnes of coal would be mined which would be ramped up to 500,000 in the first year and one million tonnes within 30 months.

Monnet Ispat is trying to acquire iron ore mine one in Eastern India and one in Chhattisgarh. Initially 450,000 tonnes of iron ore would be procured which would be increased to 900,000 tonnes in two years as the company would hike its sponge iron capacity.

Meanwhile, Monnet Ispat is planning to merge with Monnet Power its sister company with itself by September 2004.

Related stories:

Citicorp to pick up equity in Monnet Ispat (21-Apr-04)