NEW DELHI: Rashtriya Ispat Nigam Ltd (RINL) plans to set up a three million tonnes per annum (mtpa) steel plant in Jharkhandinvolving an estimated Rs 16,500 crore investment.
The state-run steel manufacturer's Chairman and Managing Director A P Choudhary has already communicated the intention of the company for setting up the facility to state government at a recent meeting with Jharkhand's Chief Secretary, sources close to the development said.
RINL has applied for the state's prolific Ghatkuri mine, located at the West Singhbhum district, is spread over 2,600 acres. This mine is considered to be one of the largest iron ore mines in the country and has an estimated reserves of 600 million tonnes.
Sources said the state government is keen on giving the Ghatkuri mine to the Jharkhand State Mineral Development Corporation (JSMDC). Thus, the officials have suggested RINL to ink a joint venture pact with JSMDC to ensure steady supply to the project. RINL has agreed to the state's suggestion.
"RINL plans to set up a three mtps plant in the state. This will, however, depend upon availability of iron ore and based on the techno economic feasibility of the same including land availability and water etc," they said.
Considering USD one billion investment for setting up a one million tonne steel plant, the total investment in the plant would be over Rs 16,500 crore, they added.
RINL also proposes to set up a beneficiation plant and a steel rolling mill of initial capacity of one million tonne each and plans to double or treble capacity in stages.
RINL is ramping up its steel-making capacity to 6.3 mtpa in its Vizag facility from 3 mtpa now. Plans are also there to raise capacity further to 12 mtpa in stages.
The company also proposes, following Rajasthan government's recommendation of allotment of one iron ore mine at Bhilwara, to set up a two mtpa steel plant in the state.