Tata sponge, one of India’s largest sponge iron producer received clearance from Ministry of Environment Forest and Climate Change to whoop the production.
Currently, The company has 3 kiln of 500 MT each which produce sponge iron at 390,000 TPA. And the enhancement of production is from 390,000 TPA to 425,000 TPA.
Commenting on the clearance granted, Tata Sponge Iron Ltd MD Mr. Sanjay Pattnaik said, “We were able to achieve the 100% capacity in FY 17 for the first time and we are fairly confident that from existing installed equipments and by adopting better operational activities the company can increase the production”.
Further adding on this he stated, this increase in production will be done on incremental stage. For this year company is targeting in 5% increase in volumes that will be around 410,000 TPA.
Current realization in sponge is around INR 15,500-16,000/MT; which have registered a drop INR 2,000-2,500/MT with an extreme volatility in the market in line with the volatility in Coal cost
The company is expecting better realization in FY 18, as there are many investments coming in rural areas and infrastructures.
India is the largest producer of sponge iron in the world and have installed capacity of 47-48 MnT. In the FY17 the country has produced approximately 24.4 MnT sponge which is an growth of 6.5% against FY16.
– Sources
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