MMTC promoted steel company Neelachal Ispat Nigam Ltd (NINL) has commenced sale of surplus power following an agreement with power trading company PTC India Ltd (formerly Power Trading Corporation of India Ltd). Power sale will be done via the open access route.
From the sale of excess power from its captive unit, NINL expects to make additional earning of INR 1 crore each month.
PTC is a pioneer in power trading business promoted by NTPC Ltd, Power Grid Corporation of India Ltd (PGCIL), Power Finance Corporation (PFC) and National Hydro Power Corporation (NHPC).
NINL has a captive generating plant of 62.5 MW for meeting its internal requirement. Before the arrangement with PTC India, the excess power was sold to Gridco, the bulk power purchaser in Odisha.
The power plant of NINL uses waste gas from blast furnace and coke oven to generate power where no coal is used.
NINL has set up an 1.1 MnT integrated iron and steel plant at Kalinganagar, Odisha. It is the country’s highest exporter of pig Iron since 2004. Its portfolio of products include steel billets, pig iron and LAM (Low ash metallurgical) coke along with nut coke, coke breeze, crude tar, ammonium sulphate and granulated slag.
NINL is selling more of its pig iron in the domestic market and is able to recover cost of production and stay EBITDA (earnings before interest, taxes, depreciation and amortisation) positive.
It has chalked out a plan to achieve steel output of five mtpa in two phases. Full capacity expansion estimated to cost INR 25,000-30,000 crore, is slated to be achieved by 2025.
The steel PSU has decided to import 60,000 MT of coking coal as it looks to step up its hot metal production rate towards the first quarter (April-June) of 2017-18. MMTC has already floated global tenders for import of coking coal.
NINL aims to reach its rated production capacity of 3000 MT of hot metal per day from the beginning of 2017-18
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