Vraj Iron & Steel Approves ₹450 Crore Greenfield Integrated Steel Plant in Bastar, Chhattisgarh
Vraj Iron and Steel Limited's Board of Directors has approved a ₹450 crore greenfield integrated steel plant in the Bastar region of Chhattisgarh, as part of the company's long-term capacity expansion strategy. The board also approved the takeover of the project land, located at Village Chapka, Tehsil Bhanpuri, District Bastar, from promoter and holding company Gopal Sponge and Power Private Limited.
As part of the arrangement, environmental clearance granted by the Ministry of Environment, Forest and Climate Change, along with other regulatory approvals already secured for the site, will be transferred to Vraj Iron and Steel. The Bastar location offers proximity to high-grade iron ore reserves, which is expected to lower raw material transportation costs for the project.
The first phase of the integrated plant will add annual production capacity of 201,000 tonnes of sponge iron and 201,000 tonnes of mild steel billets. It will also include 15 MW of power generation from a Waste Heat Recovery Boiler and a further 15 MW from Circulating Fluidized Bed Combustion. The total capital outlay of ₹450 crore, inclusive of GST, will be funded through ₹150 crore from internal accruals and equity infusion and ₹300 crore through debt financing. The project is targeted for commissioning within 30 months of groundbreaking.
The expansion will add to Vraj Iron and Steel's existing installed capacity of 235,500 TPA of sponge iron, 210,600 TPA of billets and 54,000 TPA of TMT bars, along with its current 17 MW waste heat recovery power unit and 15 MW solar power facility. The company said the move is aimed at strengthening its manufacturing footprint and leveraging fiscal incentives available under Chhattisgarh's industrial policy for the Bastar region.