Bhubaneswar, Oct 24: The Indian Metals and Ferro Alloys Limited (IMFA) has consolidated its position as the largest integrated producers of Ferro alloys with the merger of its subsidiary Indian Charge Chrome Limited(ICCL).
Announcing the merger to mediapersons here today, IMFA group Managing Director Subhrakanta Panda said the company would invest Rs 700 crores in the next three years to expand the Ferro alloys capacity from 2,35,000 tonnes per anum to 3,50,000 tonnes.
He said with the investment of Rs 150 crores, the company would add a 27 MVA and 48 MVA furnace to enhance its capacity of Ferro alloys production.
The IMFA, he said, would foray into the power generation as a stand alone business by setting up of a 30 MW dual fuel and a 120 MW coal-based power plant at the cost of Rs 500 crores.
Mr Panda said with the commissioning of all these projects, turnover of the IMFA would touch from the present 500 crores to Rs 1000 crores by 2010.
Mr Panda claimed that nearly 95 percent of the shareholders of the ICCL voted in favour of the merger, which was effective from October 17, after the Orissa High Court upheld the merger while disposing off a petition. He said both the 30 MW duel fuel power plant and the 120 MW coal- based plant would be located at Choudwar, where the company had already established a 106 MW coal based captive power plant.
The IMFA Managing Director said while the generation from the 30 MW duel fuel plant would be consumed by the company, a special purpose vehicle would be set up under a separate company with IMFA having a major share for erecting the 120MW power plant, to be used for selling outside.
To a question, he said with a debt burden of Rs 570 crores, the ICCL has been merged with the IMFA which was a part of the restructure strategy decided earlier.
The ICCL, Mr Panda said was conceived as a separate company because of the restriction imposed by the MRTP.
Mr Panda said IMFA was looking at diversification and might go for setting up of Alumina Plant in the near future but refused to give any details at this stage stating that the proposal is now at a preliminary stage.
The IMFA Managing Director said the company would require another 62 acres of land for its expansion of Ferro alloys production unit at Choudwar but maintained that its existing coal block would meet the requirement of the additional 120 MW power plant for another 30 years.