Dr Y S Rajasekhara Reddy, Chief Minister, Andhra Pradesh, is expected to inaugurate SBQ Steels' Phase I - 5,00,000 tonne integrated pig iron plant at Ankalapatturu near Krishnapatnam in Nellore district on 2 September 2009.

The company plans to raise the capacity to 1.5 million tpa in Phase III at an outlay of Rs 2,500 crore. The funding for this phase will come from a combination of internal generation, debt funds and an IPO.

SBQ Steels' plant is coming up in three phases, on a 650-acre site. In Phase I, the company will commission a blast furnace, a sinter plant and coke oven for making pig iron.

In Phase II, SBQ is investing Rs 400 crore to produce 1,50,000 tpa of sponge iron and 5,00,000 tpa of steel billets and blooms, and nearly 6,00,000 tpa of bars and wire-rods. This phase is in an advanced stage of construction and is likely to be ready by December 2009.

Phase III, in which the steel making capacity will be raised to 1.5 million tpa, involves setting up a 250 MW captive power plant and a 10 mld desalination plant.

Related Links:
Project profile