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Srikalahasthi Pipes to infuse Rs 400 cr towards expansion

Thursday, 25 Jul 2019
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The board of directors of Srikalahasthi Pipes has sanctioned a plan to increase the capacity of its ductile iron pipe plant.

The capacity will be augmented from 3,00,000 tpa to 5,00,000 tpa with a total outlay of Rs 400 crore. The decision to expand was taken considering the growing demand of ductile iron pipes.

The board in its previous meeting had already sanctioned capex of Rs 145 crore and the balance capex of Rs 255 crore has now been sanctioned. To attain 5,00,000 tpa hot metal production, it is proposed to install additional sinter plant, increased furnace blowing system, additional hot blast stove, oxygen enrichment and all auxiliaries along with higher furnace volume.

The new blast furnace is likely to be commissioned in the Q3/FY20 and the increase in capacity of ductile iron pipe plant by end of March 2021. The investment required will be met from available funds and internal accruals. The ferro alloys project is under final stages of execution and as planned the first furnace will be commissioned by September 2019 and the second by December 2019.

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