Neelachal Ispat Nigam ltd (NINL), a steel PSU jointly promoted by MMTC ltd & Odisha government owned IPICOL, is preparing to embark on a plan to expand its steel making capacity to 5 million tonnes per annum, instead of the original 3 MnT pa expansion. The project would require an investment of INR 250 billion and the central government has decided to approach SAIL to financially support it.
“Originally, we had a plan for a 3 MnT pa capacity expansion, but the union steel secretary G. Mohan Kumar during his visit to our plant last September had suggested that we should plan for a 5 MnT pa instead of the 3 MnT pa. Subsequently, he had a discussion with the Odisha Chief Secretary also”, said P.K. Mishra, Managing Director, NINL.
He added that the expansion plan will need an investment of around INR 250 billion and it has been decided during a secretary level meeting held on 5th of this month to approach SAIL to finance the project.
In 2011, NINL board had decided to make a detailed plan for a 3-5 MnT pa expansion and the Odisha government had agreed to arrange funds for the expansion plan. But, later due to scarcity of funds, the company had to limit its plans to 3 MnT pa only. Last March, the company has commissioned its steel making facility with 1.1 MnT pa capacity. After commissioning of the SMS, the company has started producing Billets.
Through the expansion project, the company has plans to produce finished products like bars and rods and also specialized steel products.
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