NINL to invest Rs. 5,600 cr to increase capacity to 5MT.

Neelachal Ispat Nigam Ltd., a steel PSU jointly promoted by trading firm MMTC and Odisha PSUs OMC and IPICOL, announced plans to to expand its capacity to 5 million tonnes a year from 1.1 MTPA at present with an investment of Rs. 5,600 crore.

'Keeping in view the present steel market scenario and also to move on a steady pace, it is decided to undertake the expansion in two phases. In the first phase NINL's capacity will be doubled to 2.2 MTPA,' NINL Chairman Ved Prakash told reporters.

In the second phase, the capacity would be raised up to 5 mtpa at the NINL plant located at Kalinga Nagar in Duburi area of Jajpur district, he said, adding that he met Chief Minister Naveen Patnaik earlier on the day and explained to him about the expansion plans.

Stating that 30 per cent of Rs. 5,600 crore required for expansion work would be raised through equity and 70 per cent through debt, he said MMTC would pump in about Rs 400-Rs 500 crore for the purpose.

BS