2014-02-05 14:36:15 - Total gas allocation now stands at 75000 SCMD
HYDERABAD, February 05, 2014: Upstream oil major ONGC Limited has now allocated additional 15000 SCMD (standard cubic metres per day) of gas to Steel Exchange India Limited (SEIL, BSE Scrip Code - 534748) which is one of the largest steel manufacturers in the private sector in Andhra Pradesh for its Captive Power Plant at Kothapeta.
The gas will be supplied from Kammapalem field, Rajahmundry Asset on fall-back basis in pursuant to Ministry of Petroleum & Natural Gas (MoP&NG) guidelines for allocation of gas from small/isolated fields & Marginal fields.
The total gas allocation now stands at 75,000 SCMD per day. SEIL has facility to generate upto 12 MW of power at its Kothapeta plant. Presently SEIL is supplying the unutilized power
upto 9 MW to APTRANSCO.
Expressing his views on this allocation Mr. B. Satish Kumar – Managing Director, Steel Exchange India Limited said, “ We are very happy and take pride to note ONGC has approved our bid and allocated the gas. We have recently upgraded our gas engines for efficient working and We will be able to reach our full potential of power generation at Kothapeta with this allocation.”
About Steel Exchange India Limited
Steel Exchange India Limited was incorporated in Feb’1999 as Pyxis Technology Solutions Limited (PTSL). The Company is promoted by first generation enterpreneurs and technocrats. Pyxis Technology Solutions was a software Company focused on development of business to business specific online solutions. The promoters were originally into trading of steel & steel related products under the banner of Vizag Profiles a well known group in Vishakhapatnam. After gaining substantial experience in steel trading, the promoters decided to launch a portal based steel trading platform. In December 1999 M/s Steel Exchange India Limited (SEIL) was incorporated as a 100% subsidiary of PTSL. M/s Pyxis approached the Capital Markets with its maiden Initial Public Offering in June 2000.
As the demand for steel started growing from 2000 onwards, the promoters gradually ventured into steel manufacturing as a backward integration of their strong steel retail & trading business by acquiring Simhadri Steels, a company having a rolling mill at Vizag and setting up an Gas based power plant and ingot manufacturing unit at Kothapeta in 2004.
Under a Scheme of Amalgamation approved by the Members of the Companies, M/s Steel Exchange India Limited (Subsidiary) and M/s Simhadri Steels Private Limited (a company acquired by the group) were merged with M/s Pyxis Technologies Solutions Limited and the name of the Company was changed to M/s Steel Exchange India Limited. The equity shares of the company are listed on the Bombay and Kolkata stock Exchanges. The main objective of company became manufacture of steel and trading in steel and related products. Steel Exchange India Ltd now owns the entire Steel business of the group.
The group has a history of acquiring sick companies and turning them around into successful ventures. In 2008 the company had joined as a strategic investor in the rahabilitaion of GSAL (India) Ltd a sick company referred to the BIFR and had a sponge iron unit of 220,000 Mts capacity per annum. Since joining and as part of the rehabilitation, the company set up downstream arrangements namely a 240,000 Mts p.a billet unit and 225,000 Mts rolling mill in 2010. The rehabilitation scheme was approved by the BIFR in Aug 2012 and as per the package, GSAL is now merged with Steel Exchange India Limited. With the setting up of the 60 MW captive power plant, through an SPV Simhadri Power Limited promoted by SEIL, the company has successfully set up an integrated streel manufacturing hub. The company is planning to expand its present steel making capacity to 1 million tonnes per Annum with an backward integration by setting up a 0.7 Million Tons pellet plant utilizing the existing Infrastructure of 500 acres of Land, water,Private Railways sidings and 132 KV APTansco Switching station in the existing premises.