Steel ministry undertaking KIOCL Limited has firmed up an expansion-cum-modernisation programme involving an investment of around Rs 4,000 crore.
The company, which recently received Stage-1 approval from the Ministry of Environment, Forest and Climate Change for iron ore and manganese ore mining, plans to spend Rs 1,000 crore for mining operations. It expects to get the Stage-2 clearance by December and begin captive mining operations by June next year. It also plans to invest up to Rs 3,000 crore for setting up of a beneficiation and pellet plant near its captive mines at Devdari in Sandur taluk of Ballari district, a top company official told DH.
KIOCL runs a 3.5 million tonne per annum iron ore pelletisation plant at Mangaluru.
"We are in the middle of executing both backward and forward integration plans. We are planning to set up a coke oven plant as part of backward integration. As part of a forward integration plan, we are looking at setting up a ductile iron spun pipe (DISP) plant at Mangaluru. Both these projects will see an investment of Rs 1,000 crore," S K Gorai, chairman & managing director, KIOCL said.
He said the company also plans to invest around Rs 2,000 crore to Rs 3,000 crore for setting up a pellet plant and iron ore beneficiation plant near its upcoming mines in Devdari.
"There is a huge requirement for ductile iron spun pipes in irrigation and urban water pipeline projects. The government of India has taken up a "Nal se Jal" project under the Jal Jeevan Mission that requires a large number of high-quality pipes to carry water. We want to participate in such projects." Gorai said.
KIOCL will be the first company in the public sector to manufacture ductile iron pipes in the entire South India. "Considering the huge demand for these pipes across the country, we can recover the investment in six years," he said.
The export-oriented public sector company aims to fund the project with its own internal accruals, he said, adding that all the necessary approvals have already been obtained from the government for the modernisation programme.
Global consultant
Considering the huge opportunities in both domestic and global markets for its product - high-grade iron ore pellets - KIOCL is planning to explore new business opportunities in India and overseas markets. It is planning to appoint an international consultant to draw up a 10-year roadmap for the company.
"We will soon appoint an international consultant to prepare a roadmap for future opportunities and expansion. We want to carry out a SWOT analysis before venturing into new areas." Gorai said.