Indian state-owned iron ore pelletizer Kudremukh Iron Ore Company Ltd, which changed its name to KIOLC on January 22, 2009, is planning to set up a steel plant with an annual capacity of five million mt in Karnataka.
The proposed steel plant would cost around Rupees 90-100 billion ($1.85-2.01 billion), and could be set up as a joint venture with private or other firms. The company plans to take 26 percent stake and is currently looking for partners. The company's move comes after the Karnataka government's recent decision to grant mining license to companies which invest in a steel plant.
On the other hand, Kudremukh is also planning to invest over Rupees 8 billlion ($160 million) in upgrading its Mangalore pelletizing plant. The investment will include the setting up of a horizontal pressure filter, a permanent railway siding and a bulk material handling system, in addition to a ductile iron spun pipe project.
As regards its recent change of name, Kudremukh states that it took this step to reflect its current activities, in particular with regard to the establishment of the new steel plant. The name alteration enables the company to bargain for the mining lease in Karnataka. However, the company will continue to sell its products under the brand name "Kudremukh" and will retain the existing logo of the horse face.