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MOIL to tie up with SAIL and RAIL for new ferro alloy plant

Monday, 19 May 2014

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MOIL is exploring options to have a three-way joint venture (JV) with Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL), to set up a new ferro alloy plant at Bhilai, in Durg district of Chhattisgarh.

The move is pursuant to a plan to scrap a proposed plant of MOIL in Andhra Pradesh, under a JV with RINL, after the state government failed to offer assured power supply.

The Bhilai plant is likely to have 1,50,000 tonne capacity, and it will be set up with an investment of Rs 500 crore. The output from the plant will be utilised to meet incremental demand from SAIL and RINL.

In 2009, MOIL had inked two separate JVs with SAIL and RINL to set up ferro alloy units at Bhilai and at Visakhapatnam district of Andhra Pradesh. While the plant with SAIL had a proposed capacity of 1,06,000 tonne per annum, the JV with RINL was planned with a capacity of 57,000 tonne per annum.