Kanisk Steel Industries to set up 12mw-captive power plant

By Our Corporate Bureau | 29 Sep 2005

Chennai: The Chennai-based Kanishk Steel Industries Limited has decided to put up a 12mw-captive power plant at an outlay of Rs48 crore near its sponge iron plant. The company has started the process of land acquisition and placing orders for the plant. Kanishk Steel manufactures TMT steel, structural steel items like joists, channels, angles, flats, squares and rounds at its Rs24.50 crore plant in Gummidipoondi near Chennai. The company will commission its second 200-ton per day kiln next month.

Sponge iron is the product created when iron ore is reduced to metallic iron, usually with some kind of flux at temperatures below the melting point of iron. Sponge iron is used as a raw material, substituting and supplementing indigenous and imported scrap for making steel in electric arc furnaces and induction furnaces. It is used as a constituent in manufacturing steel and steel related products.

According to Ravi Gupta, chairman and managing director, the proposed power plant will use the heat emanating from the sponge iron plant as well as coal / bio mass as its fuel. The plant will reduce the company's power cost substantially.