RINL, MOIL to set up Rs 80 cr Ferro alloys project at Vizag

Mumbai, July 26 (UNI) The public sector Rashtriya Ispat Nigam Ltd (RINL) has signed a Memorandum of Understanding (MoU) with Manganese Ore India Ltd (MOIL) to form a joint venture to produce Ferro alloys at Vishakapatnam in Andhra Pradesh.

This joint venture company with 50:50 equity participation is expected to go into production in early second quarter of the fiscal 2007, a RINL release here said.

The JV company is christened RINMOI Ltd and would market Ferro alloy in its own brand name.

The manufacturing facility would be located close to Visakhapatnam Steel plant (VSP) for the locational advantage and it would have a manufacturing capacity of around 60,000 metric tons of ferro alloys per year in the first phase. This project is expected to cost around Rs 80 crore.

The joint venture company is named as RINMOI Limited and would market Ferro alloy in its own brand name by second half of the year 2007.

The MoU for the JV has been signed by RINL's Chairman and Managing Director Y Siva Sagar Rao and MOIL's CMD K L Mehrotra today at Vizag. This JV project is expected to de-bottleneck the problems presently faced by RINL in getting its Ferro alloy requirement on a continuous basis.

UNI SN MJ SKB2044