The going may be tough for Bhushan Steel, but that hasn't deterred the steel maker to resume work on its expansion project for its integrated Odisha facilty.
Bhushan's project to set up a new 7 million tonne per annum (mtpa) pellet plant at the company's existing premises in Dhenkanal, Odisha, is scheduled to go through the public hearing process next Wednesday.
"Bhushan Steel is presently operating 5.6 mtpa integrated steel plant based on Direct Reduced Iron-blast furnace iron making facilities. Since, there is a scarcity of getting lump iron ore in the market and only iron ore fines are available, which need suitable beneficiation and pelletisation before its use as feed stock.
In view of this, BSL is proposing to add 7 mtpa pellet plant unit within the boundary of the existing 5.6 mtpa integrated steel plant units at Meramandali in Dhenkanal, Odisha to strengthen the feed stock throughput," the company said in the project assessment report prior to the hearing.
The development comes amid news about Neeraj Singal-owned company planning to sell some of its non-core assets like oxygen plants or contemplation of the promoters to sell some of their personal assets to pay off the bankers.
To make matter worse, lenders like IFCI last month invoked one lakh shares which were pledged by the debt-ridden company.
The crisis at Bhushan was triggered by Central Bureau of Investigation arresting vice-chairman and managing director Singal in connection with a bribery scandal (who was later freed on bail), forcing the bankers to start worrying about how to protect their aggregate exposure of Rs 40,000 crore in Bhushan Steel from turning bad. Following the incident, rating agency CARE placed its BB ratings on credit watch.
Efforts to revive its projects would now be seen positively by investors.
About Rs 3,000 crore would be spent in the pellet plant, Bhushan has disclosed in the report.
No new land is required to be acquired for the project.
"All of the major construction activity will be restricted to the existing plant premises of 65 acre earmarked specifically for the pellet plant. All other existing infrastructural facilities of the project will be used," the report said.
Bhushan was in the process of implementing various projects at its integrated steel plant to augment availability of coke, washed coal, captive power, to optimise cost and to comply with regulations.
Apart from the pellet plant, there is a project for debottlenecking of the hot-rolled facility to increase capacity by 0.5 mtpa to 4.9 mtpa, which was expected to be commissioned this year.
There is also implementation of 0.35 mtpa colled rolling cum electrical steel complex at an estimated project cost of Rs 1,563 crore. The facility was expected to be complete by July 2015.
The expansion project also involves completion of coke oven plant (1.3 mtpa), coal washery (2.5 mtpa), setting up of two DRI kilns with aggregate capacity of 0.34 mtpa and 197 mw power plant.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}