The Hindu Business Line : RINL to appoint consultant soon for expansion

The consultant would prepare the designs and drawings, assist the plant authorities from the tendering stage and also in supervision. The equipment manufacturing and civil works would begin later.

Visakhapatnam , Feb. 3

RASHTRIYA Ispat Nigam Ltd is planning to appoint a consultant soon, probably within a fortnight, for executing its expansion plan, Mr Y. Sivasagara Rao, Chairman and Managing Director, has said.

He told reporters on Friday that the Union Government had approved the plan in October 2005, for doubling the capacity of the plant from 3.2 million tonnes at a cost of Rs 8,700 crore. "We have to appoint a consultant first. Three companies have submitted bids, the lowest bidder being M.N Dastur and Company. That company is likely to get it," he said.

He said the consultant would prepare the designs and drawings, assist the plant authorities from the tendering stage and also in supervision. The equipment manufacturing and civil works would begin later.

To a query whether there was any delay and consequent cost escalation (of the order of Rs 1.5 crore per day) in the expansion plan, he said certain procedures and processes would have to be followed. "But we are sure the plan will be completed in 36 months. By October 2008, the facilities for production of hot metal, steel and two rolling mills will be ready. After 10 more months, two more rolling mills will be made ready."

About the mobilisation of funds for the expansion, Mr Rao said there was no problem on that count. "We have Rs 4,000-5,000 crore on hand, which will be sufficient for one-and-a-half years or so. Then, the banks are ready to lend the rest. We will choose a suitable bank then."

Captive mines: Referring to captive mines issue, he said a coal block had been allocated in Dhanbad district of Jharkhand for the plant, with a potential of 260 million tonnes. "Its ash content may be 16-17 per cent. We are trying to further reduce it to 14 per cent. This coal may help us reduce import of coking coal by three million tonnes or so. We are also trying for a captive iron ore mine," he said.