Bhubaneswar: In order to deal with acute shortage of raw material, Visa Steel has signed an agreement with state owned Nilachal Ispat Nigam Ltd for conversion of Iron ore fines to Sinter at the later's 0.5 million tons per annum specialised steel plant located at Kalinganagar in Jajpur district.
According to reports, the agreement was signed between the two companies on the 18th of March this year and has come into effect from the beginning of the current financial year. As per the agreement, Visa will procure iron ore fines from Daitari and other mines from Joda in Keonjhar district and Koida in Sundargarh district.
Visa has already obtained permission from the Director of Mines for transportation of iron ore fines of size 0-5 mm. However, the company has requested the steel and mines department to allow movement of iron ore fines of size up to 10 mm for proper manufacturing of sinter.
As per the agreement, NINL will supply 2 lakh tons of Sinter (+-20%) on conversion basis at the rate of 16,000 to 20,000 tons per month, from 1st April 2013 to 31st March 2014. NINL will charge Rs 2,450 per ton of Sinter excluding the statutory levies and taxes.
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