Simhadri Power begins operations

With Simhadri Power Limited commencing operations, Visakhapatnam-based listed company Steel Exchange India Limited (Seil) expects to bring down its production cost by 5 per cent.

Simhadri Power, promoted by Seil, has set up a 60-Mw (44-Mw coal-based and 16 Mw waste gas-based) captive plant in the premises of Seil. It started generating power from November. Seil has a 300,000-tonne capacity steel plant at Kothavalasa near here.

“Due to frequent power cuts, our production had come down to below 50 per cent. But now, with Simhadri Power going on stream, we are producing steel on a continues basis with 100 per cent capacity,” said B Sathish Kumar, chairman and managing director of Seil.

He said this would also reduce production cost by over 5 percent and thereby boost profits from the next financial year. The company is expecting a turnover of Rs 1,500 crore next fiscal and about Rs 1,000 turnover this fiscal.