Steel Exchange India (SEIL) on 7 August 2010 began commercial production at its Rs 300-crore steel plant at Kothavalasa in Vizianagaram district in Andhra Pradesh.

The company now has a steel TMT bars production capacity of 3,00,000 tpa. SEIL proposes to invest about Rs 1,500 crore over the next five years to augment its steel production capacity to one million tonne.

SEIL is likely to set up a 1.2 million-tonne capacity pelletisation plant to produce high-grade iron ore pellets in the same premise. The plant is expected to be completed by 2013. It is also constructing a 60 MW power plant in the same premises, which is to be ready by 2012.

Apart from this, the company also plans to set up a 7,00,000 tonne capacity blast furnace, basic oxygen furnace and electric arc furnace plant to produce special quality steels by 2015.

The projects are to be funded through a debt of Rs 1,000 crore and an equity component of Rs 500 crore. Of the Rs 500-crore equity, about Rs 300 crore will be private equity while Rs 200 crore is to be raised through internal accruals.

Related Links:
Project profile