Vraj Iron and Steel Approves ₹450 Crore Greenfield Integrated Steel Plant in Bastar, Chhattisgarh
The Board of Directors of Vraj Iron and Steel Limited has approved a greenfield integrated steel plant expansion in the Bastar region of Chhattisgarh. The project site is located in Village-Chapka, Tehsil-Bhanpuri, District-Bastar, and is currently held by the company's promoter and holding entity, Gopal Sponge and Power Private Limited. The board approved a takeover proposal for this land parcel to enable faster execution of the project.
The Phase One capital investment for the Bastar facility is estimated at approximately ₹450 crore, inclusive of GST. The company plans to fund the project through a mix of ₹150 crore via internal accruals and equity infusion, and ₹300 crore through corporate debt.
The project layout includes captive power infrastructure comprising a Waste Heat Recovery Boiler (WHRB) power plant generating 15 MW using waste gases, and a coal-based Circulating Fluidized Bed Combustion (CFBC) power plant producing another 15 MW for grid backup. This is intended to support primary metal production while insulating future output from grid tariff volatility.
Vraj Iron and Steel currently operates two manufacturing units in Raipur and Bilaspur, Chhattisgarh, producing sponge iron, MS billets and TMT bars. The Bastar project marks the company's entry into a new integrated production site in the state.