Mukand Vijayanagar

The project is to manufacture hot rolled products with a capacity of 1.85 million tonne per annum. The unit is located beside the Jindal plant at Bellary in Karnataka. However, the reason for Mukand having chosen to produce HR products is not clear. By the time they commission the project in 2000-01, the demand-supply scenario would have undergone a drastic change with supply outstripping demand. This is because of the commissioning of various HR plants including that of Jindal Vijayanagar and Ispat Industries.

Mukand should learn from Jindals mistakes to ensure the project's viability. They should get all formalities completed before spending any money on the project like the Jindals did. The Jindals had to struggle to get the mines allotted and had to face stiff opposition from the locals for land acquisition.

 

However, there have been a few silver linings. Mitsui of Japan is taking a 10 per cent stake in the project.

And, Mukand is going for the conventionally safer blast furnace technology and not trying something new like the Corex technology which is being implemented by the Jindals. Analysts feel the Corex technology may be a risky proposition in Indian conditions.