The unit to be set at Vizag was to be set at Vizianagaram at first.
State owned Steel units, RINL and MOIL are exploring possibilities of setting up a Ferrous Alloy unit at Vizag. The venture will attract an expenditure of Rs 200 crore. The project was proposed to execute at Vizianagaram but now will commence at Vizag.
PSUs took nearly four years to work their way through on the project. Earlier the project was planned to start at Vizianagaram but later the two companies found the place unviable. Now the very project is about to start at Vizag which is 70 km away from Vizianagaram.
A joint venture company had been incorporated by RINL and MOIL as on July,2007, which will have equal equity participation in setting up of the Ferro alloy unit at Vizag.
RINL has its own Steel manufacturing arm at Vizag. The capacity of the plant is about 57,000 tons per annum.
“The entire project is getting revisited as it is not found viable in the original location. Moreover,the respective boards of the two firms deliberated on the issue and decided to further explore the alternative strategy of installing the unit at Vizag (Visakhapatnam)“, a source stated.
Moreover, MOIL is also setting up a Ferro Alloy plant in a joint venture with SAIL. The estimated expenditure on this unit is around Rs 400 crore.
Another Ferro alloy unit is about to set up in Chhattisgarh. The capacity of the plant will be around 1.06 lakh tonnes per annum. The project has already got its approval from the Environment Ministry.