Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, on 11 January 2016 signed a Memorandum of Understanding (MoU) with Andhra Pradesh government.
The MoU envisages investment of around 38500 crore rupees to take up various projects at Visakhapatnam.
The deal was signed during the 22nd CII Partnership Summit & 1st Sunrise AP Investment Meet, which is being held in Visakhapatnam.
Key highlight of the MoU
• The investments by RINL will include expansion capacity of Vizag Steel to 7.3 million tonnes per annum (MTPA) with a modernisation that may cost approximately 3600 crore rupees.
• At an investment of 3400 crore rupees, construction of Coke Oven Battery and other projects are also expected to be modernised.
• The overall investment figure of 38500 crore rupees also includes further total expansion capacity of RINL to around 11.5 MTPA to 12 MTPA.
• The company will also spend 6100 crore rupees on a slurry pipeline and pellet plant in a joint venture with NMDC & others.
About Rashtriya Ispat Nigam Limited (RINL)
• Rashtriya Ispat Nigam Limited, also known as Vizag Steel, is an Indian government-owned steel producer.
• The company is based in Visakhapatnam.
• It has been awarded the Navaratna status, with accompanying autonomy of operations, due to its strong financial performance.
• The plans for a steel plant in Visakhapatnam were announced in 1971 by then Prime Minister of India, Indira Gandhi.
• Originally, intended as a plant of the state-owned Steel Authority of India Limited, RINL was established as a separate company in 1982.
• It has been constructed with collaboration with former USSR and Germany.
• It is amongst the most advanced Steel plants in India and one of largest integrated steel plants in the world.
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What: Inked an MoU
When: 11 January 2016