RINL, MOIL form JV to produce 60,000 tonnes pa

New Delhi, Sep 27 (UNI) Public sector companies Maharashtra-based Manganese Ore India Ltd (MOIL) and Andhra Pradesh-based Rashtriya Ispat Nigam Ltd (RINL) will form a joint venture company with 50:50 equity participation to produce 60,000 tonnes of ferro alloys per year.

The project cost is expected to be around Rs 90 crore. The equity contribution by MOIL and RINL would be to the tune of Rs 20 crore each and the balance would be through external borrowing. The equity contributions by MOIL and RINL would be met through internal resources by the respective companies.

According to official sources, the joint venture project is expected to be located near Visakhapatnam and is likely to go into production from early second quarter of 2007.

The estimated turnover of the joint venture company would be Rs 200 crore per annum.

Presently, RINL procures about 40,000 tonnes of silico manganese per annum valued at about Rs 110 crore. The proposed JV would meet the entire requirement of RINL.

Under the JV, furnaces will be set up to produce ferro manganese and silico manganese. Later, the company would expand itself to meet the increased demands of RINL.

RINL will supply its surplus power to the company and MOIL will supply high grade manganese ore. Also, it would provide technical skill to the company in its day-to-day operations.

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