Vraj Iron and Steel Ltd has approved a major expansion plan to establish a greenfield integrated steel plant in Chhattisgarh’s Bastar region, marking a significant step in strengthening its manufacturing capacity and operational footprint.
The company’s Board of Directors has approved the takeover of a strategic greenfield project site located at Village-Chapka, Tehsil-Bhanpuri, District-Bastar. The land is currently held by the company’s promoter and holding entity, Gopal Sponge and Power Private Limited.
As part of the approved proposal, all existing environmental clearances and regulatory approvals secured by the promoter entity from the Ministry of Environment, Forest and Climate Change (MoEFCC) and other Central and State authorities will be transferred to Vraj Iron and Steel.
The Bastar location offers strategic advantages due to its proximity to high-grade iron ore reserves, which is expected to reduce raw material transportation costs and improve the competitiveness of the proposed facility.
The first phase of the integrated complex will include a sponge iron plant with a capacity of 201,000 tonnes per annum (TPA) and a mild steel (MS) billet production unit with a capacity of 201,000 TPA.
The project will also feature two captive power generation units — a 15 MW Waste Heat Recovery Boiler (WHRB) power plant using waste gases and a 15 MW coal-based Circulating Fluidized Bed Combustion (CFBC) power plant to provide additional power support.
The company estimates the total investment for the first phase at around ₹450 crore, including GST. The project will be funded through a combination of ₹150 crore from internal accruals and equity infusion, along with ₹300 crore through corporate debt.
Vraj Iron and Steel said the decision follows an assessment of the steel sector outlook and the industrial incentives offered by the Chhattisgarh government for investments in the Bastar region, including fiscal benefits, tax exemptions and subsidies.
The company expects to commission the integrated plant within 30 months of the foundation ceremony.
Once operational, the Bastar facility will significantly enhance Vraj Iron and Steel’s existing production capabilities. The company currently has installed capacities of 235,500 TPA for sponge iron, 210,600 TPA for billets, 54,000 TPA for TMT bars, along with a combined 32 MW power generation capacity from WHRB and solar projects.
