Agency reports suggest that Rashtriya Ispat Nigam (RINL) would invest Rs 2,000 crore in 2013-14 if it secures a captive iron ore mine in Andhra Pradesh.
If it fails to secure a captive mine in Andhra Pradesh, the corporate entity of Vizag Steel would invest Rs 1,200 crore on capital expenditure for 2013-14, agency reports quoted a top official of the firm as saying.
The company expects to complete its ongoing expansion plan, which would raise its capacity to 6.3 million tonne per annum (mn tpa) from the existing 3 mn tpa, by next year-end.
Meanwhile, it may be noted that the Rajasthan state government allotted 1,000 acre mine to the firm and sent the proposal to the union coal ministry for approval.
The company also plans to launch an Initial Public Offer (IPO), which was deferred last year, in the second quarter of 2013-14 if the process is initiated.
It is a low-grade iron ore magnetite. There will be 300 plus million tonne estimated reserves available in the mine, reports suggest.
The company expects the process of the IPO to begin again in July or August 2013. The funds from the proposed IPO are meant for the government coffers as part of disinvestment plan.
The government indefinitely deferred RINL’s IPO due to differences with the merchant bankers over the price band of the issue.
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