Vraj Iron and Steel Approves Greenfield Integrated Steel Plant Project in Chhattisgarh
Vraj Iron and Steel Ltd has approved a major greenfield project aimed at establishing an integrated steel plant as part of its future expansion. The decision, made by the company’s Board of Directors, involves both the takeover of a suitable project site and the setup of new industrial capacity in Bastar district, Chhattisgarh.The proposed Greenfield Integrated Steel Plant will be located in Village-Chapka, Tehsil-Bhanpuri, District-Bastar, Chhattisgarh. This strategic move is set to significantly enhance the company's manufacturing capabilities and support its long-term growth strategy within the steel sector.
Project Scope and Capacity Addition
The first stage of the project includes establishing several key production facilities. The planned capacity additions are concentrated across sponge iron, MS billet, and power generation.Key details regarding the proposed expansion are summarized in the table below:
| Particulars | Details |
|---|---|
| Sponge Iron Plant Capacity | 201,000 TPA |
| MS Billet Plant Capacity | 201,000 TPA |
| Power Plant (WHRB) Capacity | 15 MW |
| Power Plant (CFBC) Capacity | 15 MW |
Investment and Timeline
The estimated capital investment required for this Phase I project is approximately Rs 450.00 crores, which includes GST. The project will be funded through a combination of internal accruals, equity infusion, and debt. Specifically, the funding structure involves Rs 150 crores from internal accrual and equity infusion, and Rs 300 crores from debt.Vraj Iron and Steel expects to commission the entire project within 30 months from the date of the ground breaking ceremony.
Strategic Advantage in Bastar Region
The Board noted that the decision to expand in the Bastar region is supported by a detailed review of the steel industry outlook and the Industrial Policy of Chhattisgarh. The site at Village-Chapka offers crucial strategic advantages, including proximity to iron ore resources and lower logistics and transportation costs.The proposed expansion is also aimed at leveraging the attractive fiscal incentives, exemptions, and subsidies offered by the state government for industrial investments in Bastar. This project aims not only to enhance manufacturing capacity but also to strengthen the company's operational efficiency and market standing.
VRAJ Stock Price Movement
On Tuesday, shares of Vraj Iron and Steel Limited saw a strong rally, finishing at ₹133.26 after closing higher by 11.26%. The stock traded within a significant range during the session, hitting a day low of ₹119.55 before peaking at ₹141.8.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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