KIOCL's DISP project to be retendered

Chennai: The long-pending proposed Rs 300-crore ductile iron and steel pipe (DISP) project of KIOCL (formerly Kudremukh Iron Ore Company Ltd), will be executed by a re-tendering process.

KIOCL has retendered for selection of a global bidder to take up the one lakh-tonne project on a turnkey basis, after earlier tenders attracted only a single party.

The re-tender will fetch a better offer from intending parties, considering the recessionary trends (many new projects now kept on hold) now plaguing the global economy.

The DISP plant proposal isa forward integration move, and a value addition to make the blast furnace unit into a profitable venture on stand-alone basis. On fears expressed over the likely cost and time overrun of the project.

The project completion schedule was 20 months including the performance guarantee from the effective date of contract.

Queried on the competitiveness of the DISP project in the current scenario of dropping crude and steel prices, with more plastic/steel pipe manufacturers entering the water pipeline segment, the company was keen on developing infrastructure and funds were being allotted for construction of water and sewerage lines. According to sources, there will always be demand for DI pipes, which were far superior to the cast iron pipes.

On the position with regard to fresh mining lease, the Karnataka Government recently allotted 116 ha of iron ore mining area in Chikkanayakanahalli, Tumkur district to KIOCL. The mining activities to start within two years, after getting the necessary statutory clearances.