To set up mining, value addition projects in Karnataka
Rashtriya Ispat Nigam Ltd (RINL) and Bangalore-based KIOCL Ltd, the public sector units under the ministry of steel, have come together to set up a joint operation wing for the establishment of mining and value addition projects in Karnataka.
Union steel minister Virbhadra Singh inaugurated the wing. Chairman and managing director of RINL, PK Bishnoi, said the joint operation wing was a right step for ensuring raw material security for both the companies as they do not have captive iron ore mines, a VSP release said.
According to an understanding worked out between both the companies, to begin with, they are working on setting up a ductile iron spun pipe (DISP) plant in Mangalore, where KIOCL has a pellet plant and blast furnace unit.
The DISP plant, which will have a capacity of 100,000 tonnes per annum, will see an investment of Rs315 crore. Both KIOCL and RINL are working out the equity structure for the new company to take up this project, a KIOCL official said.
KIOCL is in the process of preparing a detailed project report for the DISP plant. The new plant will be located at its existing land in Mangalore. There is a huge demand for spun pipes from various state governments, urban development bodies. They are used in irrigation projects, drinking water supply and sewerage projects and other large infrastructure projects.
“KIOCL has strengths in carrying out low-grade iron ore mining and pelletisation process, while RINL has expertise in making steel. We will make use of these strengths and explore opportunities in mining and value addition in the iron and steel sector,” the official said.
The joint operation wing will also explore other opportunities like scouting for new iron ore deposits in the state of Karnataka and setting up of coke oven battery plant.
KIOCL is also in need of coke for its blast furnace unit, which it plans to source from RINL. At the same time, RINL may look for sourcing pellets from KIOCL, the sources said.
KIOCL has already applied for fresh mining lease in Ramanadurga region in the iron ore rich Bellary district of Karnataka.
The Karnataka government is in the process of making a recommendation to the Centre for prior approval to allot iron ore deposits to new steel mills coming up in the state including KIOCL.
