The Hindu Business Line : Visa Steel coke oven project phase I to be ready by March

THE first phase of Visa Steel Ltd's 400,000 tonnes per annum capacity, stamp-charged coke oven project is slated to go on stream in March 2006. Production at full capacity would be attained by June 2006, according to Mr Vishal Agarwal, Managing Director of Visa Steel Ltd.

Speaking to Business Line, Mr Agarwal said the coke oven project has been set up at a cost of Rs 160 crore. It was part of a fully intregrated, 1.5 million tonnes per annum capacity steel and stainless steel project that was being set up at the Kalinganagar Industrial Complex in Jajpur district of Orissa at an estimated total cost of Rs 2,500 crore. While the first phase of the steel plant, which envisages the setting up of a 0.5 million tonnes capacity unit, would be ready by 2007, the project in its entirety would be operational by 2010.

According to him, the coke oven plant would generate an estimated revenue of Rs 400 crore in the first full year of operations. Already, in March this year, Visa Steel has commissioned a 225,000 tonnes per annum capacity blast furnace at the same site. The blast furnace, the setting up of which has entailed an investment of Rs 96 crore, would generate a revenue of Rs 250 crore for the company in the current fiscal. Basic grade pig iron produced therein is sold to steel plants in the region while the foundry grade pig iron that is produced is sold to foundry units in and around Kolkata and Punjab.

According to him, Visa Steel had applied for coal blocks and iron ore mining rights. As part of mechanised consortium mining, the company has already been allotted a coal block at Patrapara block of Talcher district of Orissa. The Industrial Promotion & Investment Corporation of Orissa Ltd is understood to be in favour of recommending iron ore mining rights to the company. An application in this regard has already been made. For the first phase of 0.5 million tonnes steel and stainless steel production, raw material to the tune of 1.5 million tonnes - including 1.25 tonnes of iron ore - would be required. At full production capacity, raw material of around four million tonnes would be required.

Plans for the Kalinganagar complex also include the setting up of a 2 X 25 MW captive power plant based on co-generation. While the first 25 MW power unit would be operational by December 2006, the next 25 MW unit would go on stream by March 2007, according to Mr Agarwal.

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