Financial Daily from THE HINDU group of publications
Wednesday, Mar 15, 2006
Financial Daily from THE HINDU group of publications Wednesday, Mar 15, 2006 |
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Corporate
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New Projects Industry & Economy - Steel SPS Steel allotted coal block in Orissa Ambar Singh Roy
The consortium Tata Sponge Iron Ltd and Scaw Industries are the other consortium partners. Tata Sponge would get 76 million tonnes of the coal reserves, Scaw Industries 40 mt and the SPS group 32 mt. SPS Group has also applied for iron mining rights in Orissa.
Kolkata , March 14 SPS Steel & Power Ltd, which is setting up a sponge iron and steel products manufacturing facility in Jharsuguda district of Orissa at an investment of Rs 900 crore, has been allotted a coal block - as part of a consortium where Tata Sponge Iron Ltd and Scaw Industries are the other partners - on a 30-year lease basis at Radhikapur East in Angul district of Orissa. Coal from the allotted block would meet 70 per cent of the captive requirement of the company's Jharsuguda plant, Mr Bipin Kumar Vohra, Chairman & Managing Director of the SPS Group of Companies, told Business Line here. The Jharsuguda plant has the capacity to manufacture 2,20,000 tonnes per annum of sponge iron, one lakh tonnes per annum of ferro alloys, one lakh tonnes per annum of structurals and two lakh tonnes per annum of rounds. The plant would also have a 12 MW waste heat recovery-based power plant. Mr Vohra said Tata Sponge Iron Ltd was the leader of the consortium that had been allotted the coal block and the Tata group company would deploy its financial resources to mine the coal, which would then be passed on to the other partners in the consortium. The cost to the partners thereof would be based on transfer pricing that would be fixed by the three partners. While Tata Sponge would get 76 million tonnes of the coal reserves, Scaw Industries would get 40 million tonnes and the SPS group 32 million tonnes. According to Mr Vohra, the SPS Group has also applied to the Government of Orissa for iron ore mining rights in the State. The company's application in this regard is stated to be under the consideration of the State Government.
Plans unit in HP
SPS Steel & Power is also setting up another unit in Himachal Pradesh at an investment of Rs 60 crore. The company's Himachal Pradesh facility would have the capacity to manufacture 120,000 tonnes per annum of finished long products that would be marketed in North India under the `Elegant' brandname. Work on the project has begun in January 2006 and the unit is expected to go on stream by January 2007. The SPS Group expects to end fiscal 2005-06 with a turnover of Rs 1,100 crore. In 2007-08, when all manufacturing units currently under implementation go on stream, the SPS Group would notch a turnover of Rs 3,000 crore, Mr Vohra said.
Related Stories: More Stories on : New Projects | Steel | Coal
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