Ferro chrome producer Indian Metals & Ferro Alloys said that it is investing INR 1,000 crore to increase production capacity and enhance captive power generation in the next 2 years to meet the growing demand.

IMFA is expanding production capacity of its mill in Orissa to 275,000 tonnes from the present 235,000 tonnes. The company is also expanding its existing captive power unit by 30 MW to about 140 MW and the new line will run on both coal and gas.

Mr Subhrakant Panda MD of IMFA said that "Overall we are investing INR 1,000 crore in the expansion program. Part of the sum has already been invested and remaining is to be invested soon."

Mr Panda sad that "The expanded line of both ferrochrome and power is likely to be commissioned by up to March 2010. In addition to the planned 140 MW, the company is also in process of setting up additional 120 MW line. We have started the construction for the 120 MW unit which is expected to be complete in next two years. We are in process to tie up the funds for it."

He added that "Until now, our power units are meant only for captive purposes. But going forward, power could soon be an independent line of business for us. We are exploring opportunities to buy coal and chrome resources abroad. For coal, we are primarily looking at Indonesia and for chrome, we are mainly looking at Europe. Turkey is an attractive option."

IMFA supplies ferrochrome to steel maker POSCO and many Japanese and Chinese firms. The company is also betting big on the power sector and may soon hive off a subsidiary to enter commercial production. IMFA exports about 75% of its produce. Its major domestic clients include country's largest stainless steel maker JSL.

(Sourced from Press Trust of India)