In 2014, Vizag Steel Plant (VSP) witnessed a hit in its production due to the shortage of water supply. The Rashtriya Ispat Nigam Limited (RINL), which is the corporate entity of Vizag Steel Plant, has initiated several measures to prevent this from happening again.
Recently, RINL has expanded its overall capacity to 7.3 million tonnes. By investing Rs 4,000 crore in modernising and revamping the existing units, it has added one million tonnes liquid steel capacity. This has necessitated measures to increase the quantity of water received by the plant.
The RINL is a stakeholder in the Visakhapatnam Industrial Water Supply Company (VIWSCO). Under the aegis of VIWSCO, the RINL gets water from Yeleru Canal. At present, the RINL is receiving 60 MGD of water from Yeleru reservoir through Kanithi Balancing Reservoir-1 (KBR-1). With a storage capacity of 16 million cubic metres, the KBR-1 supplies water to the steel plant and the township. But reportedly, the reservoir is filled up to its maximum capacity.
Now, Vizag Steel Plant will be commissioning its second reservoir, the Kaniti Balancing Reservoir-2. The officials have said that the Phase-2 of Kaniti Balancing Reservoir will play a key role to provide water security. It will augment the water supply to the plant and Ukkunagaram Township.
KBR-2 is being constructed at an estimated cost of Rs 465 crore adjacent to the NH-16 (Kurmannapalem). It will have a storage capacity of 12.32 million cubic meters with a 24-metre deep single compartment. With a green cover around it, the reservoir might be serving as a tourist attraction besides supplying water to RINL.
L&T undertook the entire project of civil works, electrical, pumphouse, piping and mechanical works. Reportedly, the new reservoir will be commissioned in September after it gets filled with water from Yeleru reservoir.