BHUBANESWAR: The Mideast Integrated Steel Ltd, promoters of the Mesco Steel, is planning to scale up its operations in the State by investing another Rs 10,000 crore. Capacity of the the brown field project will be augmented to 3 million tonne per annum and the company is targeting to achieve this in another three years.Managing Director Rita Singh on Friday said the company is eyeing to raise the 1.2 million tonne pig iron capacity to 3 million tonne of steel, mostly structural steel. The future is in structural steel and the its market is going to grow in a massive way, she said adding, the company is planning to get into retailing by delivering products directly to the manufacturers instead of going through the sellers. This, she said, will also result in better price realisation. The MISL has already invested ` 2,500 crore in its steel plant as well as mines and now target to pump in anther ` 10,000 crore in the project with a debt-equity ratio of 2:1, Chairman JK Singh said, after the company’s Board meeting here. The company which has now paid off all its debts has already started its new sinter plant whereas its large railway siding is in the process of being commissioned. The 9 mn tonne siding will first see capacity utilisation of 6 mn tonne before the expansion takes place. Singh said the second sinter plant as well as expansion of the siding are expected by September. Mesco Steel which has its own merchant mine at Keonjhar’s Barbil is already operating at 3 million tonne capacity and has plans to double it by 2013-14. A second mine too has been also been allotted to the company with high grade iron ore reserve. The company which is busy putting in place its infrastructure also eyes its coke oven plant using its coal mine in Madhya Pradesh. “Now that the company is debt-free, has secured all raw materials along with infrastructure, enjoys proximity with ports, Mesco is poised to be one of the lowest cost steel producers in the country,” the company said. MISL which has been making steady profit for the last three years has already gone for dematerialising of shares and targets to complete it by June. Singh said, the company shares will soon be quoted in the Bhubaneswar Stock Exchange to start with. Independent Director of the MISL Board including former Chief Secretary DP Bagchi were also present on the occasion.
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