NEIA, Vizag Steel expansion also on cards

CCEA has in its agenda the National Export Insurance Account (NEIA) that will ensure the availability of credit risk cover for projects and other high value exports, desirable in the national interest.

To the extent reinsurance is available from either the General Insurance Corporation (GIC) — India’s national reinsurer — or any other reinsurer, no assistance will be sought from NEIA. If reinsurance is available, only partially for a project, assistance will be sought from the fund only for that portion not covered. Budget 2005-06 had allocated Rs 200 crore to NEIA.

The Visakhapatnam Steel Plant’s expansion plan for it’s liquid steel capacity from 3 million tonne to 6.3 million tonne will also figure on CCEA’s agenda. The company had been toying with the idea of expanding its hot metal capacity from 3.4 million tonne to 6.5 million tonne.

The execution of both these expansion plans is likely to take three years to complete and will cost about Rs 8,250 crore.