New Delhi, September 28: Integrated steel manufacturer Vraj Iron and Steel has moved to divest its stake in MVK Industries as it looks to clear the path for commissioning its massive, upcoming ₹ 450 crore greenfield steel project in Bastar, Chhattisgarh. The company aims to fully commission the capital-intensive facility within three years given that it has now received the Environmental Clearance for the same.
The Raipur-based company has been aiming to divest its 13.20% stake in MVK Industries to its holding company Gopal Sponge as it looks to raise funds to support the timely commissioning of its ambitious steel project.
This greenfield project is engineered to double the company’s sponge iron production footprint. The vertically integrated facility will feature a 0.8 MTPA pelletization plant, 3,35,000 TPA sponge iron production capacity, and a 40 MW captive power generation system to support consistent, self-sufficient output.
With an aim to streamline the holdings and to concentrate its capital resources, the company is aiming to meet its targets of about 3 years to bring the state-of-the-art plant from construction to commercialisation, scaling its presence in central India’s mineral-rich belt.
For Vraj Industries, a lot is riding on this flagship plant, given its location near high grade iron ore reserves in Chhattisgarh. ics and enhance operational EBITDA margins in the medium term.
