Mangaluru: Pellet maker KIOCL said Monday it is planning to sign a memorandum of understanding (MoU) with Steel Authority of India Ltd (SAIL) to set up a pellet plant under a joint venture (JV). KIOCL has already approached SAIL in this regard, confirmed a source.

In a statement, KIOCL said the company has already diversified in the field of O&M services (operation and maintenance) and proposes to expand its operation in other parts of the country by setting up new pellet plant which is a requirement of the day. KIOCL Ltd, under the Steel Ministry, has an iron oxide pellet plant with a capacity of 3.5 million tonnes per annum at Mangaluru in Karnataka.

“KIOCL CMD Subba Rao has expressed that keeping the above background and experience in view and diversify/expand KIOCL’s operation by making use of the emerging opportunities. KIOCL has already signed a MoU with RINL to set up a 2 MTPA pellet plant at Vizag. On similar lines, KIOCL is planning to sign a MoU to set a pellet plant under JV with SAIL,” the company said.
Steelmaker SAIL did not comment on the development. Rashtriya Ispat Nigam Ltd (RINL), also known as Vizag Steel, is a Public steel producer based in Visakhapatnam.