The Company’s continuing investments in expanding the power generation capacity is both a measure of the fundamental strength and belief that this will contribute to India’s growing need for Power and will also add to the Company’s abilities to withstand any downturn in a single product group.
The 50 MW Power Plant in Orissa is in operation, wherein the power is used for captive consumption. This has reduced the power cost of VISA Steel significantly. The Company plans to further raise the power generation capacity by another 25 MW to 75 MW by 2010 and another 250 MW to 375 MW by 2012 in Orissa.
The Company also plans to set up a 500 MW Power Plant at Raigarh in Chhattisgarh.
This will result in an opportunity to sell a part of its power generation, thus opening up another revenue stream, besides of course, the cost advantages and continuous assurance of captive power.