The Chennai-based Rs106-crore turnover AML Steel Limited
will set up a 2-million tonne integrated steel plant in
Jharkhand to manufacture sponge iron and mild steel billets
used by steel re-rolling mills.
be implemented in three phases, the company would initially
spend Rs114 crore to build a 1.10-lakh tonne capacity
sponge iron plant, a 42,000- tonne mild steel billets
plant and a 9.6mw waste heat recovery power plant at an
outlay of Rs30 crore.
to the Ashok Agarwal, managing director, AML Steel Limited,
the company has obtained the mining rights for iron ore
and coal in jharkand. "The iron ore mining lease
is for 20 years. As per the geological estimates the 384-acre
mine site has reserves of 25-million tonne while the plant
requires just 1.76-lakh tonne per annum for the first
also said that AML Steel is not interested in selling
the iron ore to outsiders though it would fetch around
Rs2,500 per tonne.
about the funding pattern for the expansion, Agarwal said
that the company has tied up debt to the tune of Rs50
crore. The promoters would put in around Rs20 crore and
balance would be tapped from the public through an initial
a question as to how the Rs7.5 crore equity based AML
Steel is going to find money to implement the second and
third phases of the project that would require another
Rs1,830 crore executive director, finance, Viswanathan
P said the entire project would take
another six years to complete. By that time he expects
the company to have grown to a sufficient size to raise
debt and further equity.
forward, AML Steel also plans to set up rolling mills
at its Pondicherry and Karikal units.