Rashtriya Ispat Nigam Limited, the holding company of Visakhapatnam Steel Plant (VSP), is looking for space in Andhra Pradesh Capital region to set up a stock yard that will be its nodal centre for south India. It will have a minimum monthly storage capacity of 5,000 tonnes which will be ramped up to 100,000 tonnes. A formal request has been made to the government to provide land for the facility.
Besides, the VSP is partnering with the A.P Mineral Development Corporation for iron ore mining in Kukunoor mandal of West Godavari district as part of diversification of its business portfolio. Necessary clearances are being obtained to start excavating an estimated 25 to 30 million tonnes of ore in the current year, said VSP Chairman and Managing Director P. Madhusudan.
Addressing media persons after inaugurating the public sector company's 24th Branch Sales Office (BSO) here on Friday, Mr. Madhusudan said VSP was keen on meeting the imminent spurt in demand for quality steel in the capital region of A.P, where construction activity is bound to increase substantially over the next couple of years. Housing is one sector that is already witnessing a surge due to the capital buzz.
Pricing advantage:- “We are located closer to the A.P capital than other steel plants and have adequate capacity to cater to the rising demand. We also have pricing advantage compared to other steel-makers", he observed. As far as VSP's growth is concerned, the CMD said the 6.3 million ton expansion project has been recently commissioned and it is going to be a 7.5 million ton-plant in the coming months due to modernisation.
Mr. Madhusudan said VSP was in the process of setting up a forged wheel plant at Raebareli in Uttar Pradesh and an axle plant in West Bengal. Both these projects are joint ventures of VSP and the Indian Railways.
Apart from this, VSP is taking the mining special purpose vehicle in Odisha forward as the 'lead plant' for the Orissa Minerals Development Company Limited and other partners for creating additional steel-making capacity. VSP Chief Vigilance Officer B. Siddhartha Kumar, General Managers S.K. Chakrabarti and S.N. Rao, Regional Manager (A.P) P. Eswaraiah and BSO Manager (Finance) N. Srinivas Rao were present.