Visakhaptnam steel plant – operated by State Owned Rashtriya Ispat Nigam Ltd, is to be allocated ore mining rights in Andhra Pradesh, according to the State’s Chief Minister.

Unlike the main state owned company, SAIL, VSP has lacked its own mining concessions and hence has to buy ore on the open market which is costing it some INR 5000/t more than its domestic competitors with captive ore supplies.

VSP currently has an ironmaking capacity of around 3.4Mt from two 12m hearth blast furnaces but is in the progress of nearly doubling output to 6.3Mt/y by the end of the year.