On 10 Dec’15, Vizag Steel had floated a global tender to procure a total quantity of 100,000 MT (50,000 MT iron lumps & 50,000 MT iron fines) with scheduled technical bids to close on 08 Jan’16. Inorder to get better response, the company further extended the tender till 29 Jan’16.
According to market sources, on 29 Jan’16, due to less participation as well as low bids, the company further extended this tender till 29 Feb’16 in hopes to get better response.
The procurement is to be done from single source (either imported or indigenous suppliers) and only established mine owners can participate in this tender.
As of now, Vizag Steel has undertaken expansion and modernization of its capacity from 3.0 MnT pa to 6.3 MnT pa in FY16 and 7.3 MnT pa till FY17. However, the company produced 2.74 MnT crude steel in FY16 (till Dec’15). For that it sourced 4.83 MnT iron ore. Vizag Steel sources its iron ore from NMDC only.
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