Visa Steel plans new projects with Baosteel

Visa Steel and China’s Baosteel Resources are discussing a host of projects, apart from the ongoing ferro chrome at Kalinganagar in Orissa.

Vishambhar Saran, chairman Visa Steel, said, Visa Bao would be the principal vehicle for Baosteel’s investments in India. “They are interested in raw material security, but no country wants to export resources, so they can look at value added raw material,” he said.

Visa Bao is setting up four furnaces of 16.5 MVA each for production of 100,000 tonnes ferro chrome at Kalinganagar. Visa Bao is currently in the process of completing the financial closure for the project. The entire equity from promoters to the extent of Rs 91 crore has been infused into the company. “Around 70 per cent of ferro chrome would go to Baosteel’s stainless facility in China,” said Saran.

Chrome ore, pellets and steel making are the other areas being discussed. Visa Steel holds 65 per cent in the joint venture while the balance is with Baosteel. Visa Steel has other projects in the pipeline. Work on a 2.5 million tonne steel plant in Chhattisgarh would start next year and options would be evaluated in Jharkhand, as well.

In Chhattisgarh, Visa Steel has 250 acres and the balance would have to be acquired. The public hearing process was on. Vishal Agarwal, managing director Visa Steel, said, the total land requirement for the project was 1,000 acres.

Visa Steel is setting up a 0.5 million tonne special steel melt shop, 0.5 million tonne special steel bar and wire rod mill and additional power plant to complete the integrated facility of special steel making in Orissa.