New Delhi : NRI billionaire Anil Agarwal-led Vedanta Resources is mulling a 5 million tonnes per annum (mtpa) steel plant in Karnataka which may entail an investment of Rs 30,000 crore.
The mining and metals conglomerate has already initiated a feasibility study for its proposed foray into the steel sector through a joint venture, but is yet to commence talks with a potential partner, a source told PTI.
“The company is looking at all opportunities to grow in iron and steel sector. As far as steel-making is concerned, it looks very serious about development of Bellary Steel. It owns 700 acres and is looking at a stage-wise increase and may put up a five mtpa steel plant,” he said.
Agarwal is likely to announce the plan at the company’s Annual General Meeting slated for August 1 in London. A senior official, when contacted, declined to comment on the issue.
India’s largest iron ore producer and maker of various non-ferrous metals such as aluminium and zinc, Vedanta had in 2011 acquired the assets of Bellary Steel and Alloys (BSAL) for Rs 220 crore through a competitive bidding process.
Iron ore is one of the key raw materials for steel-making and having a captive source helps a company remain competitive. Headquartered in Bangalore, BSAL had embarked on setting up an integrated steel plant, with five lakh tonnes per annum capacity and a provision of taking it to 2 mtpa at Bellary. It however, could not complete the project and ran into debt.
