Rashtriya Ispat Nigam to supply gas for expansion

Rashtriya Ispat Nigam to supply gas for expansion

Indian steel producer Rashtriya Ispat Nigam Ltd (RINL) is reportedly planning to supply gas in order to expand production capacity of its mill Vizag Steel Plant (VSP). As reported by SteelOrbis back on Friday, RINL announced that it would invest Rupees 1.1 billion (approx $24 million) to establish a coke oven plant at the mill in order to increase annual production capacity of VSP to 5 million tons by 2007. Moreover, in the second phase, the capacity is planned to be increased to 10 million tons by 2011. RINL officials stated that provided that they can supply gas, the company's coal requirement will decrease by 25%. As a result, cost of steel making will reduce for the company. Related to the subject, RINL is in negotiations with Reliance, Gujarat Petrochemicals and Gas Authority of India Ltd (GAIL) to supply gas to VSP. It is stated that the government will determine which company will establish the pipeline for supplying the gas.