Rungta Mines to Expand Steel Plant Capacity to 2.85 MnT

Leading merchant miner Rungta Mines has committed an investment of INR 7836.9 crore to ramp up capacity of its integrated steel plant three fold from 0.9 MnT pa to 2.85 MnTpa.

The ramp-up plan got the go-ahead from the High Level Clearance Authority (HLCA), the highest body to approve investments in the state.

Alongside the steel plant expansion, Rungta Mines will also be setting up 385 Mw Captive Power Plant (CPP) and 1.69 million tonne cement plant in two phases at Jharbandh in Dhenkanal district. The projects will generate employment for 4900 people.

It may be noted that Rungta Group was unable to retain any of its operative merchant mines auctioned by the Odisha government. The Group promoters lost to more aggressive bidders in the frenetic online auctions that saw premiums crossing 100 per cent. The standalone miner did not quote such steep premiums as it felt that bagging a mine at that cost would have been unsustainable for a merchant miner. Odisha had successfully auctioned 21 iron ore, manganese ore and chromite blocks who lease tenures ceased on March 31, 2020.

With most of the prized iron and manganese ore resources lost in the auctions race, Rungta Mines is now concentrating on steel making business.

Besides Rungta Mines, the state government on Monday cleared two more fresh investments in steel and downstream sector. Kashvi International Private Ltd has proposed to set up 1.2 million tonne iron ore beneficiation plant to feed its 0.6 million tonne per annum (mtpa) iron ore pelletisation plant with an investment of Rs 55.23 core and creating employment opportunities for 50 people.

In parallel, the state government gave the go-ahead to a proposal of Purosteel India Private Ltd to establish a manufacturing unit for tubes & pipes PVD coating, furniture fabrication, finished sheets & profiles and trimes at a cost of Rs 53.42 crore, promising employment for around 200 people.