MSP Steel & Power ... !!!!!!

Home > Money > ReportMSP Steel reworks project in quest of profitsThursday, Dec 5, 2013, 9:08 IST | Place: Kolkata | Agency: DNASumit Moitra  Looks to introduce high-margin items and cut down on costly fuels at Jharsuguda project in Odisha.Steel makers are thinking out of the box to get the better of the gloom. MSP Steel & Power has restructured and tweaked the integrated steel project promoted by its arm, MSP Metallics, deciding not to opt for low-profit products and reduce dependence on high-cost fuels like coal. Instead, it wants to incorporate high-margin items at a lower capital cost at its project at Jharsuguda in Odisha.“The reorganisation of the project by going for high-value items like seamless pipes and cutting down on unprofitable items like sponge iron has brought down capital costs and would also help its bankability,” Kamal Jain, chief financial officer, MSP Steel, told dna.MSP Metallics is scaling down the size of the sponge iron plant to 0.57 mtpa from the projected 0.99 million tonnes per year (mtpa), in addition to cutting down the sizes of coke oven, coal washery and captive power plants. At the same time, the company is doubling the capacity of the iron ore pellet plant to 1.2 mtpa from the earlier planned 0.6 mtpa and that of  iron ore sinter plant to 0.92 mtpa from 0.46 mtpa.Also, additional facilities like a seamless tube plant of 0.3 mtpa and TMT bar plant of 0.24 mtpa are in the works. “The promoter of the project, due to scarce availability and rising of price of iron ore and coal, compelled to shift its focus to producing value-added special category steel products such as seamless tube and steel rods. As a strategic measure, capacities of sponge iron are reduced substantially, along with the coal washery, coke oven and captive power plant. In order to match the capacity of metallics, enhancement of pellet and sinter capacity is envisaged,” the project document stated.The total cost of the proposed restructured project is estimated at Rs 1,279 crorehttp://www.dnaindia.com/money/report-msp-steel-reworks-project-in-quest-of-profits-1929809