New Delhi: Rashtriya Ispat Nigam Ltd (RINL) is reportedly planning to set up a three million tonnes per annum (MTPA) steel plant at an estimated investment of Rs 16,500 crore in Jharkhand.

The state-run steel manufacturer's Chairman and Managing Director AP Choudhary has already communicated the company’s plans to set up the facility to state government at a recent meeting with Jharkhand's Chief Secretary, sources close to the development said.

RINL has applied for the state's prolific Ghatkuri mine, located at West Singhbhum district and is spread over 2,600 acres. This mine is considered to be one of the largest iron ore mines in the country and has an estimated reserves of 600 million tonnes.

Sources said the state government is keen on giving the Ghatkuri mine to the Jharkhand State Mineral Development Corporation (JSMDC). Thus, the officials have suggested RINL to ink a joint venture pact with JSMDC to ensure steady supply to the project. RINL has agreed to the state's suggestion.

"RINL plans to set up a three MTPA plant in the state. This will however depend upon the availability of iron ore and will be based on the techno economic feasibility of the same including land availability and water etc," they said.

Considering USD one billion investment for setting up a one million tonne steel plant, the total investment in the plant would be over Rs 16,500 crore, they added.

RINL also proposes to set up a beneficiation plant and a steel rolling mill of initial capacity of one million tonne each and plans to double or treble capacity in stages.

RINL is ramping up its steel-making capacity to 6.3 MTPA in its Vizag facility from 3 MTPA now. Plans are also there to raise capacity further to 12 MTPA in stages.

(Agencies)

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