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Rashtriya Ispat Nigam to complete expansion by December

Friday, 25 Oct 2013
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Rashtriya Ispat Nigam (RINL) is planning to commission a 3.3 million tpa expansion plan by December 2013.


As part of Phase-I of the expansion plan, the company will open a new steel melting shop, a sinter plant, wire rod, and structural and special bar mills at its Visakhapatnam facility with an investment of Rs 6,165 crore.


A new blast furnace has already been commissioned and the company is working at around 60 per cent capacity. On synchronisation with the new units, the blast furnace will be fully utilised. The estimated cost of the new melting shop is Rs 2,344 crore and the sinter plant, Rs 754 crore. The combined cost of the wire rod, structural and bar mills is placed at around Rs 3,067 crore.


The company will stick to its Rs 1,600 crore capital expenditure plan for FY14. It has so far invested around Rs 900 crore.


Though the first stage of expansion is set to be completed, residual expenditure is likely. For seamless start of work in stage-II, RINL will need to make capital expenditure this fiscal.


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