Steel producer Southern Ispat & Energy Ltd (SIEL) is planning to enter into backward integration by setting up a 1.2 -million tonne pelletisation plant in Chattarpur, Madhya Pradesh. With an estimated investment of Rs 300 crore, the plant is set to start operations by April 2014.

SIEL will invest Rs 150 crore in the first phase. The remaining investment would be done in the second phase. The company has already acquired 100 acres in Chattarpur and is expected to start its beneficiation and pelletisation process by April 2014, said a senior company official.