Business   

VSP keen on captive ore mine in Orissa

By Pratim Ranjan Bose

KOLKATA MAY 1. Saddled with a huge 45 per cent raw material cost and irked by the high prices charged by National Mineral Development Corporation, its main iron ore supplier; Vizag Steel has taken an initiative for captive ore linkage.

Coal requirement, however, will continue to be met through imports due to high inland freight charges. Meanwhile the company is in the process of submitting a Rs. 2,500 crore expansion plan to enhance the production to five million tonnes of hot metal from 3.94 million tonnes based on availability of natural gas from the Godavari basin in 2004.

In an interview to The Hindu, the newly appointed chairman-cum managing director, B. K. Panda, said that to reduce dependence on NMDC, supplying ore from its Biladila reserve, Vizag Steel had initiated negotiations for three reserves one in Orissa and two in Chhattisgarh.

Interestingly, while the Union Steel Ministry is showing interest in the expansion plan, Mr. Panda is not making any hasty moves.

"We envisage over 10 per cent growth, including Rs. 1,000 crore export target (Rs. 626 crores in 2002-03) in this fiscal to consolidate our position as a profit making company".

More than gaining the confidence of the Ministry to approve its expansion plan, the exercise is aimed at gaining self-confidence to finance the project without Government support.

Also, according to his latest communication to the bankers, another year in profit would enable the company to raise working capital loans without government guarantee.

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Science & Tech | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• CMIE expects slowdown
• IFC to increase exposure in India to $1 b
• BoB, Union Bank to cut PLR, deposit rates
• Chasms in WTO talks on import tariffs
• IOC plans for new petrol pumps
• VSP keen on captive ore mine in Orissa
• Walmart, GAP to make India sourcing hub
• Centre seeks to end TMB imbroglio
• Exploit poverty to improve quality — Prahalad

Copyright © 2003, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu