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Ajaokuta: ISPAT unveils $445m expansion plan

online ISPAT unveils $445 million expansion plan

By Luka Binniyat

Tuesday, December 26, 2006

ABUJA - Ispat Industries Limited, a sister company to Global Infrastructures Nigeria Limited, (GINL), managers of Ajaokuta Steel Company Limited, (ASCL) last week signed a memorandum of understanding (MoU) with the Government of Maharashtra to expand its steel-making capacity at its integrated steel plant at Dolvi in Raigad, Maharashtra.

Ispat's expansion plan includes increasing its steel-making capacity from the present 3 million tonnes to 5 million tonnes per annum, entailing an investment of about $445 million and creating new employment opportunity to over 10,000 people, directly and indirectly. The steel-making capacity will also be scaled up to 10 million tonnes in later phases. The first phase of expansion will be completed over a period of 18 months from the date of commencement of work.

A second blast furnace, a coke oven plant and a new slab caster will be added to the existing facility in the expansion project. Ispat's existing 3 million tonnes per annum integrated steel complex at Dolvi has been set up with an investment of over Rs. 10,000 crores and provides employment to over 6,000 people, directly and indirectly.

The MoU was signed by Mr V K Jairath, Secretary, Department of Industries, Government of Maharashtra (GoM) and Mr Vinod Mittal, Managing Director, Ispat Industries Ltd, in the presence of Mr Vilasrao Deshmukh, Hon'ble Chief Minister of Maharashtra, Mr Ashok Chavan, Hon'ble Minister of Industries, GoM, Dr D K Sankaran, Chief Secretary, GoM, Mr V R Sharma, Executive Director (Strategic Business) and Mr Anil Sharma, Director (Corporate Affairs) of Ispat Industries Ltd.

The Maharashtra government, which is keen to attract more investment in the state and strengthen its economy, has agreed to provide the necessary support for the project. The state government will also facilitate Ispat's requirement of iron ore mines while the Maharashtra Industrial Development Corporation will act as a single window clearance agency for various infrastructure requirements of the expansion project.

Ispat Industries Limited's Managing Director Mr. Vinod Mittal said, "We are grateful to the government for promising all necessary help to expedite the implementation of the expansion project."

Speaking on the occasion, the Maharashtra Chief Minister Mr. Vilasrao Deshmukh said, "Ispat has contributed immensely for the development of the state by setting up the steel plant in Raigad. Ispat was the first company in the private sector, which made an investment of over Rs 10,000 crore in a sector like steel in the state of Maharashtra. I am happy to note that Ispat has planned to bring in fresh investment in its existing plant in Raigad to increase steel-making capacity."

"This will definitely add to the development of the area and increase employment opportunities. The investment plan of Ispat is in tune with the Maharashtra government's vision towards overall progress in the state, especially in the rural areas. We assure Ispat of all the assistance needed like iron ore requirement, etc, to take the project forward," the Chief Minister added.

Minister for Industries, GoM, Mr Ashok Chavan said, "In Maharashtra, Ispat is in the forefront as far as investment in steel-making is concerned and this new project assumes significance considering the importance of steel in infrastructure development. The investment plan also proves that Maharashtra enjoys the confidence of industrialists regarding infrastructure and the support it provides."

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