Essar Steel plans to start setting up the twin 4 million tonne per annum steel units it purchased from a South Korean company by early next year in either Hazira or Paradeep. Total cost of the project is about Rs 5,000 crore (Rs 50 billion).
The two steel units were purchased by Essar group earlier this month for about Rs 437 crore (Rs 4.37 billion) from South Korea's INI Steel. The company expects the steel units to be functional by the start of 2008.
"We expect the two steel plants to be shipped by early next year and hopefully we expect the work to begin by early next year," said a company executive.
On the choice of either Hazira or Paradeep, the executive said the installation of the units at a location near the sea considerably reduced the cost. "Moreover we have MoUs (memorandums of understanding) signed with both the state governments," said the executive.
At present, Essar Steel's entire 3 million tonne steel production is based in the western part of the country. The two units are now being dismantled for shipment to India. INI Steel had acquired the steel units last year when they bought another of their country player, Hanbo steel.
The steel units use the corex technology, an environment-friendly alternative to the conventional blast furnace route for producing hot metal.
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