KIOCL, an Indian public sector organization under the Ministry of Steel, has approved a feasibility report for a 2 million mt iron ore pellet plant in Visakhapatnam, Andhra Pradesh for Rs 900 crore ($128 million).
The greenfield pellet plant is a joint venture with Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP). At present RINL is meeting its pellet requirements with supply from Mangalore, Karnataka. The venture is expected to provide cost savings from reduced freight costs. The detailed report is expected by the end of August and work on the project will start soon thereafter.
The project will be housed in 75 acres allotted by RINL at Ukkungaram, Andhra Pradesh. The plant is expected to be commissioned by 2021. KIOCL Ltd is also exploring the possibility of establishing a 1.5 million mt pellet plant in collaboration with SAIL Bokaro Steel Plant possibly in the state of Karnataka.