Kolkata, Nov 30: State-owned trading firm MMTC said it will invest about Rs 6,000 crore to double the capacity of Neelachal Ispat Nigam (NINL) in the next four years.
MMTC has decided to double the hot-metal capacity of 1.1 million tonnes in the next four years in Neelachal Ispat in the first phase, Chairman and Managing Director Ved Prakash said here.
He said the steel plant will commence production from December.
MMTC holds 50 per cent stake in Neelachal Ispat while, NMDC Ltd and Odisha Mineral Corp, have 12 per cent and 28 per cent, respectively.
Prakash said Neelachal Ispat’s board have already given in-principal approval for the expansion to 2.2 million tonnes hot-metal capacity.
MMTC said it may convert its Rs 1,000 crore working capital loan into equity toward its share of fresh equity of Rs 2,000 crore requirement towards the expansion.
In the second phase, the capacity of Neelachal Ispat would further be increased to five million tonnes, Prakash said.
Meanwhile, buoyant from gold business and higher coal imports, MMTC is eyeing a revenue of Rs 20,000 crore in the current financial year, Prakash added.
MMTC had posted a Rs 18,241 crore top-line in 2014-15 from around Rs 25,000 crore in 2013-14.
