Visa Steel Ltd has decided to set up a 2.5 million-ton integrated steel plant in Chhattisgarh with a total investment of Rs 1,000 crore.

Mr. Vishambhar Saran, Company’s chairman stated that the project is likely to be commissioned by the next 5-6 years.

“Initially, we would be setting up a one million tonne rolling mill, which would need an investment of around Rs 600 crore,” Mr. Saran said.

Mr. Saran also told that the company will chalk out its technical feasibility report for the said project by July 2008.

“We would mainly manufacture long products there,” he said.

The company has already acquired land for its upcoming plant, which would cover up more than 150 acres, he added.

“We will go for further expansion at a later stage,” he said.

Mr. Saran also said that the company’s one-million ton steel rolling mill would be established with a total investment of Rs 800 crore. The rolling mill is likely to commence production of finished product by 2011.

The company has already signed a MoU with the Chhattisgarh government in 2003 but the project has been postponed because of land acquisition problems.

The company has also set a target of increasing its total production to 2 lakh tones by 2010 end.

“We plan to invest Rs 260 crore for a Ferrochrome plant of Bao Steel in Orissa, which will have a production capacity of one lakh tonne. The production capacity of the Visa Steel Plant of Orissa would also be enhanced to one lakh tonne,” Mr Saran said.

Visa Steel has acquired Baosteel Resources co Ltd, China and holds 51 per cent stake in VisaBao Limited (VBL).

During fiscal 2007-08, Visa Steel registered a growth of 110% in its PAT, which stood at Rs 43.15 crore, as against Rs 20.52 crore during the last year.

Total revenue during the period under review augmented 27% to Rs 682.81 crore (Rs 537.93 crore).

Mr. Saran said that the performance of the company got a fillip from better realisation across products like pig iron, coke and ferro chrome, which were produced in larger volumes.

Managing director Vishal Agarwal said the company’s board has recommended a dividend of 10% to shareholders.

The shares of the company, on Wednesday (May 28), gained 1.86% at Rs 60.15 on the Bombay Stock Exchange (BSE).