Visa Steel to invest Rs 8,000 crore for setting up steel plant

Kolkata, May 28 (UNI) Visa Steel plans to invest a total of Rs 8,000 crore over the next five to six years to set up a 2.5 million-ton integrated steel plant in Chhattisgarh, company Chairman Vishambhar Saran said here today.

Speaking at a programme to announce the company's financial results, Mr.Saran said to start with, a one-million ton steel rolling mill would be set up with an investment of Rs.800 crore. The rolling mill is expected to start production of finished product by 2011.

Visa Steel has already signed a MoU with the Chhattisgarh government in 2003 but the project has been delayed due to problems of land acquisition.

The company has also set a target of increasing its total production to 2 lakh tones by 2010 end. "We plan to invest Rs 260 crore for a Ferrochrome plant of Bao Steel in Orissa, which will have a production capacity of one lakh tonne. The production capacity of the Visa Steel Plant of Orissa would also be enhanced to one lakh tonne," Mr Saran said.

Visa Steel has acquired Baosteel Resources co Ltd, China and holds 51 per cent stake in VisaBao Limited (VBL).

Mr.Saran said the company would also set up a separate special steel plant in Orissa, with an investment of Rs 5000 crore in the first phase. The total capacity of the plant would be increased to 1.5 million tons.

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