Steel Min asks MOIL to increase capacity by FY16

The steel ministry has asked MOIL to initiate steps to increase its manganese ore production capacity to 15 lakh tonne by 2015-16 from 10.93 lakh tonne in 2009-10.

Reviewing MOIL's third quarter performance yesterday, the ministry advised the firm to expand the capacity of its mines by carrying out modernisation programmes and endeavour to achieve a production of 20 lakh tonne by 2020, an official statement said.

Steel Minister Beni Prasad Verma, who was present at the meeting, assured MOIL that the government will extend all possible support to ensure better performance and development of the company.

Meanwhile, MOIL has already initiated several measures - including deepening and sinking of vertical shafts - at its existing mines, besides large scale opencast development and acquisition of new mines in India and abroad to boost capacity.

The company has already embarked on a Rs 1,232.25 crore capacity expansion plan for the period 2009-10 to 2016-17, the statement added.

MOIL produced 8.14 lakh tonne manganese ore during the April–December period of the current fiscal. It clocked a Rs 455.69 crore net profit during the period on a sales turnover of Rs 886.09 crore.

The company had reported a Rs 965.47 crore turnover in 2009-10 and a net profit of Rs 466.35 crore.