Rashtriya Ispat Nigam Limited(RINL), the corporate entity of Vizag Steel, and Kudremukh Iron Ore Company Limited(KIOCL) signed a memorandum of understanding (MoU) to set up a joint-venture company for a pellet plant project adjacent to the steel plant at Visakhapatnam.
Pellets will be produced using iron ore fines supplied by NMDC from either the Bailadilla (Chattisgarh) or Bellary (Karnataka) mines. Part of RINL's raw material requirement will be met with these pellets.
The initial capacity of the proposed pellet plant will be 1.2 million tonnes per annum and it will have a provision to expand further depending on the requirement, the two public sector companies said.
Currently, Vizag Steel's raw material requirement is being completely met from its Bailadilla mines. The Nava Ratna company has recently announced that it has completed the expansion of steel production capacity to little over 7 million tonnes per annum.