MOIL lines up Rs 1,200 capex in next 5 yrs

State-run MOIL, whose IPO opens tomorrow, today said it has lined up a capex of Rs 1,200 crore to fuel expansion and forward integration activities over the next five years.

MOIL, also the lowest cost producer of Manganese in the world, is estimated to have 21.7 million tonnes of reserves which are expected to last for 40 years, in the backdrop of an ever growing steel industry in India.

"We have planned expenditure of around Rs 738 crore, for the expansion of our 10 mines, of which six are in Maharasthra and four in Madhya Pradesh," MOIL Chairman and Managing Director K J Singh told reporters.

MOIL's networth is Rs 2,008 crore and it has cash reserves of Rs 1,700 crore.

"We are expanding our mines and enhancing our production from 1.1 MT to 1.5 MT by 2015-16," he said.

"Another Rs 150 crore shall be spend towards forward integration projects with SAIL and RINL. The total project cost for these two joint ventures is Rs 600 crore," Singh said.

MOIL, has signed MoU with Steel Authority of India (SAIL) and Rasthriya Ispat Nigam Limited (RINL) for setting up joint ventures to make ferro alloy of 1.60 Lakh tonnes capacity, of which 1.06 lakh tonnes will be with SAIL and 57,500 tonnes with RINL.