Sesa Goa enters steel making with Rs. 9,000cr funds

In its attempt to diversify its operations in other sectors, Sesa Goa, the iron ore mining company, has planned aggressive forays in the steel sector with an initial investment of about Rs. 9,000 crore in states including Orissa and Jharkhand.  In this connection the company has recently requested the Orissa government to transfer a MoU signed earlier with Sterlite Iron & Steel Company, a part of Vedanta group, to steel sector as it is keen to set up a plant in the state. The project would now be executed by Sesa Goa, with an initial manufacturing capacity of 1.5 million tons per annum with a provision of future expansion.

Sources claimed that apart from this, the company is currently scouting for a steel firm as an equity partner for the project with an arrangement that Sesa Goa would oversee the mining aspects of the project while the partner would run the steel making operations.  Similarly it has also signed a similar agreement with the Jharkhand government to set up a 1.5 million ton pig iron plant, which will also house a power plant.  But in the changed scenario it is now planning to upgrade the project and manufacture long iron products as well.