IMFA looking for power unit partner
May 30, 2006
Business Standard

The IMFA group is planning to induct an investor in the special purpose vehicle, Utkal Power Ltd, setup for its Rs 400 crore power project.

The financial closure for the project was likely to achieved shortly and the partner could be strategic or financial.

Subhrakant Panda, Managing Director, IMFA Group said, "We are open to both the options."

He however did not divulge the stake that the partner could possibly hold in the project.

The power plant was likely to add Rs 200 crore to the group's topline.

Panda clarified that bulk of the impact would come in 2006-07.

The plant would have a capacity of 120 MW. Currently the IMFA-ICCL combine had a turnover of Rs 600 crore.

The group already has a 108 MW coal-based power plant, which meet the entire electricity requirement of the IMFA Group and the surplus is supplied to the state grid.

The power project was part of the group's Rs 600 crore phased expansion programme.

The first phase expansion comprising a 27 MVA ferro chrome furnace was complete.

The furnace put up by group company, Utkal Manufacturing & Services is capable of producing 35,000 tonne of ferro chrome per annum.

The new furnace would cater to the exports.

The group exports 60-70 per cent of its output.

The other two phases entailed setting up two more ferro chrome furnaces of 27 MVA and 48 MVA.

However, Panda said, the second and third phases of expansion were predicated on the market demand and ore availability.

All three furnaces put together production would be to the tune of 140,000 tonne of ferro chrome, which would require ore to the tune of four lakh tonne.

He said, the furnace set up recently was already drawing on the existing ores.

The group was eyeing chrome ore lease or a tie-up with Odisha Mining Corporation.

Meanwhile the IMFA-ICCL merger was expected to be complete in 2-3 months time.

The merger was mandated by the Board for Industrial and Financial Reconstruction (BIFR).

Panda said, with the merger it would be one integrated unit.

ICCL would be merged into IMFA, he said.

For any information relating to IMFA Group or to enquire about a Press Release issued by us please contact:

Mr Kishore Mohan Mohanty
Bhubaneswar
email: kishoremohanty@imfa.in