INOX Air Products will invest Rs 1,300 crore to set up two air separation units having capacity of 1,800 tonnes a day each at Tata Steel's plant in Dhenkanal, Odisha, company's Managing Director Siddharth Jain said.
The plant is being set up as part of a partnership with the steel major for supplying industrial gases like oxygen, nitrogen and argon -- which are used in the steel making process, the company executive told PTI during an interaction.
The air separation units (ASUs) will be the single-largest greenfield investment ever made by INOX Air Products and will support Tata Steel's ongoing steel capacity expansion.
The units will separate these gases from the air and supply it to the steel plant, Jain said, adding that the project is expected to be commissioned by March, 2025.
When asked about the details of the partnership, he said his company has signed an agreement with Tata Steel for 20 years to supply oxygen, nitrogen and argon, and Rs 1,300 crore will be invested to set up the plant on land provided by Tata Steel at its Meramandali plant in Dhenkanal.
"This, our first-ever onsite partnership with Tata Steel, also marks our largest ever Greenfield investment and also the facility with the largest liquid gases manufacturing capacity at a single location.
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"The development would strengthen our market leadership, besides augmenting our presence in Eastern India. With our extensive experience and steadfast commitment to the country's growth in a sustainable manner, we are well poised to propel the industrial progress in the country," Jain said.
In a statement, Avneesh Gupta, Vice President TQM and Engineering & Projects, Tata Steel Ltd said, "we look forward to this association for leveraging INOXAP's expertise in reliably delivering high-quality industrial gases, which will play a crucial role in supporting our growth ambitions contributing to our ongoing success story in the steel industry."
Post commissioning of the latest project, the company's per day capacity of manufacturing industrial gases will reach to 5200 TPD mark.
Mumbai-based INOX Air Products is the largest manufacturer of industrial and medical gases in India. It has a manufacturing capacity of 3400 tonne per day (TPD) of liquid gases delivered from 47 operating locations.
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