ESL Steel to Restart 3 Million Tonne Expansion Plans
Business Standard reported that Vedanta owned ESL Steel plans to double capacity from 1.5 million tonnes to 3 million tonnes at an estimate of INT 3,000 crore. ESL Steel Limited Chief Executive Officer Mr Pankaj Malhan said “We were going strong with our expansion plans. But Covid first hit China and then in our own country, which put brakes on the plan. Covid pushed us away by one year. The way everything is going, towards the end of fourth quarter should be a good time to start. The approvals are in the last stages.”
In 2018, Vedanta forayed into the steel business through the acquisition of ESL Steel Limited, then Electrosteel Steels. ESL, which is into long products, has a capacity of 2.2 million tonnes. When the acquisition happened, what was commissioned was 1.2 million tonnes, which was ramped up to 1.5 million tonnes. Then last year, ESL engaged M N Dastur for the expansion plan, but it was put on the backburner because of the pandemic. In the next phase, the capacity would be increased from 3 million tonnes to six million tonnes.