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Three cos interested in joining RINL-NMDC pipeline project

Friday, 20 Dec 2013
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Essar Steel, JSPL and KIOCL have expressed interest in joining as a partner in the Rs 2,200 crore JV between Rashtriya Ispat Nigam (RINL) and NMDC to set up a 450 km slurry pipeline and a pellet plant.


NMDC had issued Expression of Interest (EoIs) to which the three companies i.e. Essar Steel, JSPL and KIOCL expressed interest in being the third partner in the project.


In May 2012, RINL and iron ore producer, NMDC - both firms under the authority of the Steel Ministry - had signed an MoU for the pipeline project in order to make it a venture equal for both the parties. Later, NMDC, being assigned for the functioning of the project, wanted to involve a third partner, for which it would hand over some equity stake to the party.


The subject of involvement of the third partner will entail the approval of the Steel Ministry. The survey for the pipeline route is likely to be completed by the end of the year 2014. The slurry pipeline that will pass through Chhattisgarh, Odisha and Andhra Pradesh is likely to be commissioned by the year 2015-16.


Of the Rs 2,200 crore investment, Rs 1,200 crore is expected to be used to lay the pipeline, with a capacity of 10 million tpa, and the remaining amount will be used for setting up the 10 million tpa pellet plant.


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