Vraj Iron and Steel Unveils ₹450 Crore Greenfield Integrated Plant in Chhattisgarh

In a significant move to accelerate its long-term manufacturing footprint, the Board of Directors of Vraj Iron and Steel Limited today approved a major expansion strategy centered around a state-of-the-art Greenfield Integrated Steel Plant. The mega project, planned for the Bastar region of Chhattisgarh, marks a core milestone in the company's infrastructure and operational scale-up.

Strategic Greenfield Takeover in Bastar

To facilitate the rapid execution of this expansion, the Board greenlit a takeover proposal for a strategic Greenfield project site. The land parcel, situated in Village-Chapka, Tehsil-Bhanpuri, District-Bastar, Chhattisgarh, is currently held by the company's promoter and holding entity, Gopal Sponge and Power Private Limited.

Under the approved proposal, all active environmental clearances and regulatory permissions-including those granted in favor of the promoter company by the Ministry of Environment, Forest and Climate Change (MoEFCC) alongside other Central and State bodies-will be formally transferred directly to Vraj Iron and Steel Limited.

The Bastar site offers crucial geographical and operational advantages to the company. Its immediate proximity to high-grade iron ore reserves ensures lower logistics and raw material transportation overheads, positioning the upcoming plant highly competitively within the regional market.

Phase One Capacity Targets and Multi-Fuel Power Integration

The company aims to construct and commission the first phase of the integrated complex to build a robust, self-sustaining metal and power ecosystem. The planned capacities for the first stage include:

Sponge Iron Production: A dedicated plant with a capacity of 201,000 Tonnes Per Annum (TPA).

Mild Steel (MS) Billet Production: A core processing unit capable of producing 201,000 TPA.

Waste Heat Recovery Boiler (WHRB) Power Plant: A green energy recovery setup generating 15 Megawatts (MW) of power using waste gases.

Coal-Based Circulating Fluidized Bed Combustion (CFBC) Power Plant: A secondary power plant producing 15 MW to ensure reliable grid backing.

This layout is intended to balance primary metal production with reliable, captive green power, shielding future production lines from volatile grid tariffs.

Funding Blueprint and State Policy Incentives

The total capital investment for Phase One of the Bastar facility is estimated at approximately ₹450 crore, a figure that is inclusive of all relevant Goods and Services Tax (GST) provisions. Vraj Iron and Steel intends to fund the development using a balanced capital mix, deploying ₹150 crore through internal accruals and equity infusions, alongside ₹300 crore secured via corporate debt.

The board's commitment to the project follows a detailed review of the local steel industry outlook and the industrial policies of the Government of Chhattisgarh. The state's special industrial guidelines for the Bastar region provide deep fiscal incentives, tax exemptions, and subsidies designed to make industrial investments in the area exceptionally viable.

The company expects to officially commission the integrated plant within 30 months of the initial ground-breaking ceremony. Once completed, the Bastar facility will significantly bolster the company's current production capacities, which currently stand at 235,500 TPA of Sponge Iron, 210,600 TPA of Billet, 54,000 TPA of TMT, and a combined WHRB and Solar power output of 32 MW.

Shares of Vraj Iron And Steel Limited was last trading in BSE at Rs. 133.00 as compared to the previous close of Rs. 119.35. The total number of shares traded during the day was 38386 in over 1288 trades.

The stock hit an intraday high of Rs. 143.20 and intraday low of 124.25. The net turnover during the day was Rs. 5162357.00.

Source : Equity Bulls

Keywords

VrajIronAndSteel INE0S2V01010 SpongeIron GreenfieldPlant