Sarda Energy is higher in trade post the Chhattisgarh Environment Board's nod to up their iron ore pellet plant capacity. To discuss this and pellet prices outlook, Manish Sarda, director of the company, spoke to CNBC-TV18.

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Talking about capex for additional capacity, Manish said, “We will not be incurring any additional capex on this 2 lakh tonnes and the capacity has already been ramped up. We were just waiting for the environmental clearance for the same and we will be producing it in the coming months.”

On sourcing iron ore, he said, “We will be utilising some of our own captive and we will be buying some from the open market. We are sourcing from various sources in Odisha and from Chhattisgarh and it depends upon the pricing. As and when we get suitable price from different producers, we source it."

In terms of revenue, he said, “We will try to use as much as possible from our captive sources and this is going to add roughly Rs 240 crore to the revenues and almost Rs 40-55 crore to the EBITDA levels.”

Speaking about current pellet prices, he said it is hovering around Rs 12,300-12,400.

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(Edited by : Priyanka Rathi)

First Published:Mar 23, 2021 12:10 PM IST