Indian state-owned steel producer Rashtriya Ispat Nigam Limited (RINL) has submitted a proposal to
India's Ministry of Steel for an investment of $453.75 million to set up a steel production facility as well as pelletization and beneficiation units in the eastern Indian province of Orissa, said an official from Ministry of Steel on Tuesday, July 3.
The investment proposal has been handed over to the ministry by RINL chairman and managing director A P Chowdhury, while the ministry's assistance is also sought for initiating talks with the provincial government of Orissa for allocation of an
iron ore reserve to the steel producer.
As per the investment plan submitted, RINL will construct a steel plant with an annual capacity of 100,000 mt of long steel products in the first phase to be ramped up to 300,000 mt per year in the second phase, a 4 million mt per year pelletization unit and a 4-6 million mt per year capacity
iron ore processing plant.
The
iron ore pellets produced at its captive mine in Orissa will be shipped to RINL's main steel production unit in the southern Indian port town of Vishkhapatnam to be converted into billets and later shipped back to the Orissa facility to be converted into finished steel.
RINL will commission a techno-economic feasibility report upon receipt of a formal go-ahead from the Ministry of Steel, the official said.
RINL is currently implementing the trial-run phase of its $2.5 billion expansion program that will ramp up its
steelmaking capacity to 6.3 million mt per year from 3 million mt per year.