Bangalore, Feb 28 (UNI) Chinese Conglomerate, Xinxing Group, will set up Rs 9000 crore Iron Ore pellet and steel plant at Ginigera village of Koppal district in North Karantaka.
Xinxing, China's leading Fortune 500 company, has floated its Indian arm Xindia Steel Ltd, which has proposed to set up a two million tone Iron ore Pellet plant in the first phase. In the second it would expand this to six million tones, apart from setting up a five million ton steel plant.
Addressing newspersons here last night, Xinxing Group's Chairman Liu Mingzhong, said that his group had forged a joint venture with Indian partners Sigma Minmet Ltd, Kelachandra Group and Manasara Group.
He said his company had already acquired Hampi Steels Ltd which owned Iron ore mines in Bellary and Koppal districts and land of over 350 acres which is sufficient to set up the plant for the first phase. It had applied for sanction of 1000 acres of additional land with the High Level Committee of the state Government for the second phase, he said.
The Indian partners held 45 per cent stakes in Xindia while the rest was held by the Chinese group. The new manufacturing facility would use Xinxing's leading edge in pelletisation and and Steel making technology. It would employ best-in-class safety, health and environment compliance systems, he said.
He said current annual demand for steel in India was 40 million tonnes per annum and it had been projected that this would shoot up to 200 mt 2020.
He said Karanataka was the obivous choice for Xinxing's investment plans due to its congenial industrial environment and connectivity and logistic support. "Koppal was specifically selected due to the availability of high quality iron ore," he added.
Gopi Ramanathan, Director, Xindia Steels, said while the first phase investment was Rs 400 crore, in the second phase it would be Rs 8335 crore. The project would provide a direct employment of about 10,000, he said.
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