The Company is yet to start the implementation of its proposed Project for 110 MW

Captive Power Plant and a 33 MW furnace for ferro alloys in Jajpur as it is awaiting

environmental clearance form the concerned Government Ministry.

The Company is currently executing its expansion project in Haldia for 6 x 9 MVA

furnaces for Manganese alloys. The same is going on in full swing. Out of the six

furnaces to be implemented, in a phase wise implementation, 2 furnaces are expected

to commence commercial production by the end of 2009. The Company has already

secured the financial closure for the same for a total sum of Rs. 175 Crores of term

loan form State Bank of India, and United Bank of India.

The present capacity of the Company is 180,000 mt per annum, and with the start of

the Haldia unit in the last quarter of the current year, it will add up another 25,000 to

30,000 mt to its capacity for the current year. After the competion of Haldia project,

the Company will stand with an installed capacity of 280,000 MT of ferro alloys per

annum comprising of Chrome & Manganese based alloys, making the company the

largest merchant producer of Ferro Alloys in the country, by installed capacity.

In an attempt to forwward integrate under the flagship of RFTL, the company has

been working extensively on the front of end use of the Ferro Alloys, and finally has

conceptualised the implementation of a Stainless Steel Plant of size 100,000 MT of

finished Stainless Steel per annum at estimated Project cost of Rs.98 Crores, to be

executed as an expansion to the Bishnupur unit. For this roughly 12 acres of land has

been acquired within the West Bengal Industrial Growth Centre at Bankura. The

necessary Environmental Approvals and Clearances have been availed from the

respective Government agencies. The company envisages the implementation to start

within October, 2009 which would be subject to the Financial Closure of the same.

With a view to achieve backward integration, we are continuing to evaluate mine

acquisition opportunities both in India and abroad for chrome ore and manganese ore.