Vedanta to build a metallurgical plant in conjunction with the Jharkhand government
Vedanta, the Indian industrial group, specialized in doing business in black and color metallurgy sector. Recently, its representatives signed a memorandum with the Jharkhand state government. It is a question of understanding for the construction of a metallurgical plant. The production annual capacity of the plant is 1 mln. Tons. Estimated project cost is about 2,25−2,5 billion. USD. Representatives of Vedanta informed about the kinds of products. Among them is registered trademark cast iron and cast iron pipe products.
State of Jharkhand attractive for metallurgical enterprises considerable reserves of iron ore. Recently, the state announced several projects concerning the construction of metallurgical plants. At the beginning of 2016 Vedanta makes suggestions about the construction of the enterprise. Its cost was about 300 million. USD. The new proposal is much bigger. The number of jobs estimated around 2−2.5 thousand. Launch of the new plant expected to have on the 2020−2021 financial year. However, this is only speculation. The actual dates depend on the acquisition of land on which will be built the company. In India, the decision of this problem may take more than one year. It is possible that the solution is not to be found.
Meanwhile, the Indian government has no plans to extend the minimum import prices for steel. In any case, unless there is «an urgent need». The minimum cost is between 341−752 USD / ton. The list includes 173 species and semi-finished steel products. Prices have been set from the beginning of February 2016. The term of their actions amounted to six months. This step was taken by the authorities to protect domestic steelmakers. The threat represented by the existing competition, which arose through the fault of foreign supplies of cheap steel products.
At present it is difficult to fully assess the result of the minimum value. However, existing data suggest their beneficial effects on the national steel market. There is a decrease in imports. The cost of production in the domestic market increased. There is an increase in capacity utilization. However, a sufficient number of companies are finding ways to circumvent the restrictions. The Ministry of the country continues to search for an acceptable solution to the problem.