NINL To Invest Rs.5600 cr.To Expand Capacity To 5 MTPA : Chairman Ved Prakash

24 March, Bhubaneswar

Neelachal Ispat Nigam Limited(NINL), a joint venture steel plant of MMTC and Odisha government, will be expanded to 5 million tonne capacityfrom the existing 1.1 million tonne capacity in two phases.

Disclosing this at a news conference in Bhubaneswar , NINL Chairmanand MMTC CMD Ved Prakash said the expansion would be undertaken at an estimated investment of Rs 5600 crore.

He said in the first phase the capacity of the NINL wouldbe enhanced to 2.2 million tonnes which would be completedby 2020-21. The second phase expansion will be completed by 2025.

Ved Prakash said the company will raise 70 per cent ofthe total investment of the expansion through banks and commercial institutions and the rest 30 per cent would be inthe form of equity.

The MMTC, a major stakeholder in the plant will invest Rs 400 crore, he said. Ved Prakash is hopeful of re-allocation of the coalblock in favour of the company which was cancelled.

To a question, the NINL Chairman said the fores tdiversion and environment clearance proposals for the expansion project are in the final stage of approval by the ministry