Ispat to set up power plant at Dolvi complex

Kolkata: Ispat Industries has firmed up plans to set up a 110-MW dual fuel-based power plant, a one-million tonnes per annum (mtpa) capacity coke oven plant and a two-mtpa pellet plant at the company’s Dolvi complex.

Financial closure for the power plant that will run on discharged hot gas from the blast furnace and petro fuel and is estimated to cost Rs 800 crore has been achieved while that for the other two projects were being worked out.

The total cost of these three projects was estimated at Rs 3,200 crore, Mr Pramod Mittal, Chairman, Ispat Industries, told newspersons after the conclusion of the company’s 23rd annual general meeting held here today.

Mr Mittal said Ispat Industries’ growth strategy was geared towards ensuring raw materials security for regularity in supplies, reducing exposure to spot markets economising on input costs and ensuring stability of operations. Ensuring productivity and improving process efficiencies were other strategic thrust areas.

Mr Mittal said that to reduce exposure to raw materials’ price volatility and mitigate risks of non-availability, the company was focused on development of iron ore and coal mines and securing tie-ups to meet its natural gas requirements.

Through joint ventures, Ispat has undertaken iron ore mining operations in Brazil and coal mining operations in Mozambique.

In India, the company has been awarded prospecting iron ore leases in Maharashtra and coal in Madhya Pradesh.

During the year ended March 31, 2008, Ispat Industries recorded gross sales of Rs 9,401.67 crore, against Rs 8,378.44 crore in the previous year.

The profit before tax in 2007-08 stood at Rs 115.62 crore compared with Rs 3.37 crore in 2006-07. The profit after tax in 2007-08 was Rs 34.80 crore, against a loss of Rs 9.53 crore in 2006-07.