VISA Steel, Odisha
The facilities include 225,000 TPA Blast Furnace, 300,000 TPA Sponge Iron Plant and 500,000 TPA Steel Plant through EAF route.
The facilities include a 150,000 TPA High Carbon Ferro Chrome Plant. VISA Steel has 6 Submerged Arc Furnaces at Kalinganagar with 3x25 MW Power Generating Units.
VISA Steel had set up Electric Arc Furnace (EAF) technology for Steel Melting Shop on the basis of assurance that captive Iron Ore and Coal mines shall be allotted as per MoU signed with Government of Odisha which would have reduced cost of DRI to compensate higher Arcing costs. Without captive mines, the EAF route is currently viable only to the extent of Hot Metal thereby reducing the potential capacity utilisation of Steel Plant which is adversely impacting cost competitiveness.
VISA Steel plans to add a Sinter Plant to improve Blast Furnace productivity and reduce its dependence on Iron Ore Lumps which is more expensive.
The captive Iron Ore and Coal mines would have ensured long term supply of raw material at cost to the Plant. The Deallocation of Coal block and notification of MMDR Amendment Act has deprived the availability of captive mines and increased dependence on imports of Coal and OMC for supply of Iron Ore & Chrome Ore at auction prices. OMC has not been fixing base price of Iron Ore and Chrome Ore in a fair and transparent manner.
There is going to be a period of huge uncertainty in supply of Iron Ore and Chrome Ore after 31 March 2020 when leases of all non-captive mines will expire.
The road transportation cost is very high in Odisha as the rates are fixed by the transportation associations in mining areas which are double the Government notified rates. VISA Steel plans to have its own railway siding so that it does not have to incur shifting charges to/from nearest public siding.