KIOCL to set up 2MT JV pelletisation plants in Visakhapatnam, Bhilai, Bokaro

MANGALURU: KIOCL Ltd that is looking to expand its business footprints beyond Karnataka will set up pelletisation plants in Andhra Pradesh, Chhattisgarh and Jharkhand on JV basis. These plants of 2 million tonnes capacity each will come up in Visakhapatnam, Bhilai and Bokaro. While Visakhapatnam plant will be set up in association with Rashtriya Ispat Nigam Ltd, the other two will come up in association with Steel Authority of India Ltd.

While the board of KIOCL Ltd has approved the DPR for Visakhapatnam plant that will be set up at an estimated cost of Rs 1000 crore, this process for the Bhilai and Bokaro plants will start once KIOCL signs MoU with SAIL shortly, M V Subba Rao, CMD of KIOCL Ltd, said. Visakhapatnam plant that will be set up on fast track basis is expected to be commissioned by 2021-22 and the other two plants by 2022-23, Subba Rao, noted.

KIOCL has ventured in to setting up these plants to pare off on transportation cost of around that it otherwise incurs in transporting ore to its 3.5MT pelletisation plant at Panambur near here, he said. “We will save nearly Rs 2000/tonne on transportation cost in getting the ore from Chhattisgarh and Odisha by rail and sea route,” he said, adding the Visakhapatnam plant will source the mineral directly by rail head from Chhattisgarh and Odisha.

For pelletisation plants at Bhilai and Bokaro, SAIL has in-principle agreed to provide the raw material from its captive mines in addition to the land needed for the plant, he said. “We will need around 75-acres of land for each of these plants,” he said. While Visakhapatnam plant will produce flux pellets that will reduce additives in blast furnace and one that is much in demand in Japan, the other two plants will produce blast grade pellets, he said.

KIOCL that produced 2.301 million tonnes of pellets at its pelletisation plant here, achieving 66% production capacity, will strive to reach 100% capacity utilisation of 3.5MT in the next two-years, he said. The Panambur pelletisation plant will be purely for exports and to meet needs of coastal market and those that will be produced in the three upcoming plants for sole internal consumption by the two respective JV partners, Subba Rao, said.

Turning green, the KIOCL is all set to commission its 1.3MW solar power plant on its blast furnace premises at an estimated cost of Rs 6 crore. It will also float tenders for a 5MW solar power plant on an EPC mode at an estimated cost of Rs 30 crore in the next two to three-days, he said adding the plant location will come up in one of many land banks identified for the purpose in the state. KIOCLs daily power consumption is 35MW, he noted.

Source: timesofindia.indiatimes