KIOCL said that it has entered into a contract agreement with Tauman Engineering for setting-up of 1,80,000 tonnes per annum (TPA) heat recovery coke oven plant at its blast furnace unit, at a contract price of Rs 185 crore.

The applicable GST or such other sums will be determined in accordance with the terms and conditions of the contract along with a tripartite agreement among Tauman Engineering & CSIR-CIMFR and KIOCL for providing the technology and know-how.

In November 2019, the Government of India had approved the proposal of the company for setting up of forward and backward integration projects to the blast furnace unit (BFU) of KIOCL at Mangalore, with a total outlay of Rs 836.90 crore. Of the total outlay, Rs 276.17 crore was to be met through reserves of the company and reminder through debt.

KIOCL, a flagship company under the Ministry of Steel, Government of India, was formed on 2 April 1976 for mining and beneficiation of low grade iron ore at Kudremukh in Karnataka. As of 30 September 2021, the Government held 99.03% stake in the company.

The company reported a standalone net loss of Rs 30.33 crore in the quarter ended September 2021 as against net profit of Rs 31.32 crore during the previous quarter ended September 2020. Sales rose 0.71% YoY to Rs 462.31 crore in Q2 FY21.

The scrip rose 0.55% to currently trade at Rs 244.85 on the BSE.