RINL, Powergrid tie up for Tower Manufacturing [Jan 2012]

January 11, 2012 10:35 am

Rashtriya Ispat Nigam Limited (RINL), Visakhapatnam Steel Plant and Power Grid Corporation of India Ltd. (POWERGRID) signed a Memorandum of Understanding (MOU) to set up a joint venture company for manufacturing of transmission line towers and tower parts including Research & Development of new high-end products.
According to a press statement, the JV will bring synergy between the producers RINL and user Powergrid which have been awaited since long time. The import of quality tower transmission lines will be addressed with this JV. Both RINL and Powergrid are coming together for intervention of R&D for development of new generation transmission towers which are required for fast expanding power sector. Timely availability of material to Powergrid will be the main advantage of the JV. The installation of the unit at Vizag will enhance the quick transportation including thro Sea route and also ensures opening the market for South East Asian countries. The JV will have a unique opportunity to tap the market in South East Asia and other areas where such development is taking place in power sector.
Dr Dalip Singh, Joint Secretary, Union Ministry of Steel said, “This JV will increase bottom-line of both the companies and advised to form a JV for Cold Rolled Grain Oriented (CRGO) Steel also”.
AP Choudhary, CMD, RINL said, “This JV is coming at a right time and right opportunity for enhancing the R & D activities at RINL to develop steel for new generation transmission towers”.
The capacity of the proposed plant will be initially 2 lakh tons per annum with provision to expand further as per requirement. The estimated cost for the project will be around Rs.300-350 crore that includes rolling mill and other associated facilities.