October 08, 2008

Government updates on RINL expansion plan

Dr Akhilesh Das union minister of state for steel informed Indian parliament that centre had approved the expansion plan of Visakhapatnam Steel Plant at an estimated cost of INR 8692 crore for increasing its liquid steel capacity from 3 million tonnes to 6.3 million tonnes per annum by the 2009.

Mr Das said that, while considering the proposal for expansion, an assessment has been made in respect of the international market, export trends and internal consumption vis a vis the projected rate of return on the investment.

He added that “Assessment of returns on the investment for Expansion Phase I has already been made in the project report. The entire capital cost of the expansion plan will be met by the VSP from internal resources and extra budgetary resources at an incremental debt equity ratio of 1:1.”