MOIL to take up Rs 900-crore capex plan over next 3-4 yrs

A top company official of MOIL Ltd, formerly known as Manganese Ore (India) Ltd, has said on Wednesday that the public sector Mini-Ratna Company has taken up Rs 900-crore capital expenditure plan over the next 3-4 years period. Speaking on the development to the reporters on Wednesday, MOIL Chairman and Managing Director, Mr. K J Singh said, "We plan to expand value-added production capacity and to enter into joint ventures with Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) to set up ferro alloy plants in Chhattisgarh and Andhra Pradesh". Elaborating on the matter he pointed out that major chunk of the funds i.e. Rs 768 crore will be used for expansion of its mining operations over the next 3-4 years period, by around 40 percent.Apart from expansion MOIL will also invest Rs 100 crore in its 50:50, joint venture with SAIL at Chhattisgarh, while another Rs 50 crore will be invested in a similar joint venture with RINL at Andhra Pradesh. Adding to the matter Mr. Singh pointed out that both the JVs are for setting up ferro alloy plants and will produce ferro manganese and silico manganese. The JV with SAIL will cost Rs 392 crore, while the JV with RINL will cost Rs 206-crore and both will be help in securing potential sources of demand for MOIL's high grade manganese ore in the future. Expressing his views further Mr. Singh said, "We are committed to maintaining our leadership position in the Indian manganese ore market by increasing our production capacity in line with demand growth, focusing on our value-added product line to capture industry trends, controlling costs and strengthening relationships with our customers". Meanwhile it is worth noting that the Nagpur-based firm, which is the largest producer of manganese ore in India, is planning to come out with its 33.6 million share initial public offer ( IPO) in the last week of November, hoping to raise up to $270 million.