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Rediff News  All News  » Business » RINL plans Rs 1,000-cr jetty near its Vizag plant

RINL plans Rs 1,000-cr jetty near its Vizag plant

August 09, 2012 13:30 IST

SteelSteel-maker Rashtriya Ispat Nigam plans to set up a Rs 1,000-crore (Rs 10-billion) jetty for captive use along the Vizag coast to reduce cost and reliance on the nearby Gangavaram Port.

"RINL has already appointed consultancy firm RITES for doing the feasibility study a couple of months back.

It has also approached the Andhra Pradesh government for getting the required permissions," a steel ministry source told PTI.

State-run RITES provides engineering, consultancy and project management services in transport infrastructure sector under single roof.

Public sector company RINL depends on Gangavaram port for the movement of raw material and finished products.

But, given the size it is attaining with the expansion of its lone facility at Vizag, it becomes imperative for the company to set up own jetty to ensure smooth movement, he said.

Gangavaram Port is located almost at the backyard of

the company's Vizag facility.

The proposed jetty will also come up just on the other side of the plant.

RINL uses the Gangavaram Port to import coal and limestone and export its own finished products.

RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Vizag.

The capacity is being raised to 6.3 mtpa in the current fiscal.

It has also prepared a feasibility report for enhancing the capacity further to 12 mtpa with an investment of Rs 30,000 crore (Rs 300 billion).

"RINL will initially invest Rs 1,000 crore (Rs 10 billion) for setting up the jetty which will have 18 mtpa cargo handling capacity.

"The capacity of the jetty will be increased, depending upon the requirement," the source said.

The final decision on the proposed jetty would be taken once the company receives the RITES report and necessary nods from the state government, he said, adding this might come in 2-3 months from now.

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