Category: Light Engineering
KIOCL an export oriented unit under the Ministry of Steel is planning to set up a ductile iron pipe manufacturing unit with Vizag Steel. The project will entail an investment of Rs.6300 million and will have a capacity of 100,000 tpa, a coke oven battery of 300,000 tpa and a gas based captive power generation unit of 27 MW. The market for pipes is favourable with synergy of both companies will benefit the forward integration programme. Manufacturing pig iron will cost Rs.32K a tonne, while to make pipes it will be Rs.45K per tonne. The current market price of ductile iron pipe is around Rs.58K which will be profitable. The new plant is likely to become operational in 2012-13. Ductile iron pipes are in huge demand in India and abroad and is opted over cast iron pipes in the field of irrigation projects, drinking water supply and sewerage projects, and other large infrastructure projects.