Mecon named consultant for Nilachal Ispat's Duburi plant revamp
Tapan Chakravorti
RANCHI, January 13: The Ranchi-based public sector Metallurgical & Engineering Consultants Ltd (Mecon) has signed a contract on January 7 with Nilachal Ispat Nigam Ltd to undertake the consultancy for installation of a 1.1mt a year iron and steel plant at Duburi in Orissa with an investment of Rs 1510 crore.According to official sources, the iron making complex consisting of blast furnace, pig casting machine, raw material handling and infrastructural facilities is scheduled to be commissioned by July 1999. Sources said Nilachal Ispat has issued tender enquiry for 75 packages out of around 200 packages up to December last year. Orders for 21 packages have already been issued to the bidders. Orders for the major packages valued at Rs 850 crore will be finalised by March next, the sources said. Meanwhile, a contract for the sinter plant has been placed with CSGC, China at a cost of Rs 80 crore. A Mecon source said their consultancy job for Nilachal Ispat will be different from other consultancy they
did earlier for other concerns. Beside consultancy, Mecon will also undertake price evaluation and final placement of tenders, procurement, erection and complete site execution supervision. Although Mecon will have a nominal stake of Rs 5 crore in the equity component of Nilachal Ispat, it will receive Rs 36 crore from the company as consultancy fees. With the total equity component of Rs 553 crore, Nilachal Ispat's equity pattern is -- MMTC has a Rs 100 crore stake, Ipicol has Rs 73 crore, Mecon has Rs 5 crore, CDC has Rs 54 crore, LGC has Rs 79 crore and there is a public issue component of Rs 242 crore. Sources said the foreign exchange component in the project will be about Rs 300 crore. Hindustan Steelworks Construction Ltd has received the contract of Rs 70 crore for the civil and erection packages of blast furnace, intake water supply facilities. Civil work for the blast furnace is going on in full swing and the first lift of blast furnace foundation with 2800 M3 of RCC has already been cast,sources said. The furnace installed will be a second hand one imported from Llva Steel Works, Italy. Ranchi-based Heavy Engineering Corporation (HEC) has been assigned the job of refurbishing the old blast furnace.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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