Tata Sponge plans Rs 2,200-cr steel entry
6 November 2015
Tata Sponge Iron a Tata Group company which has a 4 million tonne-per-annum (mtpa) sponge iron plant in Odisha’s Keonjhar district, is planning to go for steel making, with an investment of R2,200 crore.
The company board has recently approved a proposal to go for forward integration of the sponge iron plant with facilities to manufacture 0.7 mtpa long products. The steel making, however, would be through the sponge iron route. As part of the steel plant project, facilities like billet caster and waste-based power plant would be developed, sources said.
While the present sponge iron plant capacity would be enhanced with setting up an electric arc furnace and two additional kilns, the company would not require additional land as the integrated steel plant would come up over the 310 acre premises of the sponge iron plant, they added.
Talking to FE, Tata Sponge managing director D P Deshpande, said: “We are confident of India’s growth story and the contribution of the metal sector in achieving the targeted growth. Tata Sponge would like to seize the opportunity and continue its successful journey forward.” Tata Sponge, which has its plant at Bileaipada near Joda iron ore belt , is now executing a waste char-based AFBC power plant of 12.5 MW with an investment of R100 crore.