IMFA expansion project by June '05

The proposed 1.4 lakh tonne ferro chrome capacity expansion project of IMFA group, the largest producer of ferro alloys in the country, has taken off from ground zero with the conduct of Bhumi Puja for Phase 1 of the project at Choudwar, Orissa.

The capacity build up will materialise through conversion contract with Utkal Manufacturing Services ltd (UMSL), an associate company of the group, which is entrusted with the job of setting up the new venture.

UMSL is promoted by the same holding entities, which own Indian Metals and Ferro Alloys (IMFA) and its sister concern Indian Charge Chrome Ltd (ICCL). However, IMFA and ICCL directly do not hold any equity in UMSL.

IMFA and ICCl together have 130 MVA furnace whose combined rated capacity is estimated at 1.7 lakh tonnes of ferro alloys per annum.

Following completion of the new project, the combined ferro chrome production capacity of IMFA group will be more than 3 lakh tonnes thus consolidating the group's position as India's premier ferro alloys producer.

The expansion programme announced earlier by the group envisages a 24 MVA furnace to be commissioned in June 2005 while a further 72 MVA furnace capacity along with a 120 MW power plant will be put up later in stages. The project is estimated to cost Rs 600 crore.

Financial closure for the first phase has been achieved and orders worth more than Rs 15 crores have been placed. While the first phase is being lease financed, the mode of raising money for the second and third phase are being worked out, said Subhrakant Panda, joint managing director, IMFA group.

The bhumi puja was performed by Bansidhar Panda and his wife Ila Panda, founder chairman and founder-director of IMFA group. Commenting on the occasion, Subhrakant Panda said: "This ceremony marks the formal initiation of the expansion project although substantial progress had already been made by way of finalising orders worth nearly Rs 15 crores leading up to today".