Hyundai may set up a special steel plant at RINL Vizag.
November 27, 2018
To explore the possibility of setting up a special grade steel plant at the premises, senior executives from Hyundai have visited the Vizag unit of the state-run Rashtriya Ispat Nigam Ltd. (RINL). Apart from Hyundai officials, the Korean Ambassador to India also visited the location.
According to Pradosh Kumar Rath, Chairman and Managing Director, RINL - Vishakhapatnam, the bureaucrat and other company officials visited the plant in October.
“Things are still at a nascent stage. Hyundai officials visited our plant in October. It is too early to comment on the project details. But the idea might be to set up a special grade steel plant,” he told reporters on the sidelines of an award show in the city, recently.
RINL operates a five million tonne per annum steel plant (catering to long products) at Vizag. It has around 3000 acres of free land there. If the JV takes off, RINL may look at leveraging its land holdings as “equity”. The proposed venture will help the Union Government’s efforts to augment steel production capacity under which the government has targeted to shore up the installed domestic steel-making capacity to 300 mtpa by 2030-31 from the existing 134-odd mtpa.
According to Rath, RINL was eyeing a 20 per cent rise in production to six million tonne of hot metal. This should happen “in a couple of months.” The target for FY20 is to increase hot metal production capacity to 7 mt.
The company has decided to reduce dependence on NMDC Ltd. for sourcing iron-ore to ensure supply security. Last year after NMDC failed to supply the raw material due to environmental and royalty-related issues. This resulted in lower production from its existing mines.