The Board of Directors of Gallantt Ispat Ltd has approved investment of Rs 511 crore to expand capacity at various locations to meet the sales and profitability targets for the coming years at its meeting held on April 5, 2016.
After the capacity addition, the total capacity of finished TMT bar will be 450,000 million tons per annum (mtpa), according to a company statement.
The proposed captive power addition will be 28 megawatt (mg) from the existing capacity of 18 mg. A steel melt shop through blast furnace route with a capacity of 297,000 mt will be introduced. Rolling mill with a capacity of 288,090 mt will added to existing capacity of 162,380 mt.
Particulars |
Unit |
Existing Capacity |
Proposed additional capacity |
Total Capacity after addition |
|
Captive Power |
mw |
18 |
28 |
46 |
|
DRI |
mt |
99,000 |
49,500 |
148,500 |
|
Steel melt shop (induction furnace route) |
mt |
167,400 |
0 |
464,400 |
|
Steel melt shop (blast furnace route) |
|
0 |
297,000 |
||
Rolling mill |
mt |
162,380 |
288,090 |
450,470 |
|
Say finished products (TMT Bars ) capacity |
|
|
|
450,000 |
Capacity in mtpa
Mecon Limited, a government of India Enterprise, has prepared a techno-commercial feasibility report and presented in front of the board.
The Capex projection of Rs 511 crore has also been approved by the Chairman of the company. “The expansion project will be funded by internal accruals including amount of subsidy to be disbursed by the State Government to the Company. The shortfall will be funded by the fresh infusion of Equity Capital or through availing of term loan from barkers and it shall be decide, from time to time as need arise,” the statement added.