Vedanta eyes 10 mtpa steel production capacity

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SME Times News Bureau | 27 Jun, 2019
Anil Agarwal controlled Vedanta, which acquired Electrosteel Steels (ESL) last year through National Company Law Tribunal (NCLT), is looking to expand its steel production capacity to 10 million tonnes per annum (mtpa) from the current 1.5 mtpa in the next 5-6 years, an official said on Wednesday.

The group had acquired bankrupt ESL under the Insolvency and Bankruptcy Code (IBC) and ESL's steel plant in Jharkhand's Bokaro has a production capacity of 1.5 mtpa.

"Vedanta is planning to have a total steel production capacity at around 10 mtpa in the next 5-6 years. For that, we are planning to increase the capacity at Bokaro to 6 mtpa. And, rest 4 million tonnes could be from greenfield or acquisitions," ESL Deputy CEO Pankaj Malhan said.

"In the next two years the capacity will be doubled to 3 mtpa with a capex (capital expenditure) of Rs 4,000-5,000 crore," he told reporters here at the launching its rebranded steel portfolio -- TMT bars, wire rods, ductile iron pipes, billets and pig irons.

The diversified natural resources major is also intending to be among top three steel producers in India.

The group is also planning to rename the company in next 3-6 months with Vedanta tag.

Malhan said the group would look to make the brownfield expansion in the existing location in Bokaro and a possible greenfield project in a new location that could include West Bengal as well as south India.

"We shall appoint a consultant for the greenfield project," he added.