SAIL to invest 12000 crore on modernization of Rourkela plant

Times of India reports

ROURKELA: The Steel Authority of India Ltd, which is at present on a major expansion and modernization drive, has a long term plan to take its production capacity to 60 million tonne by 2020, said its chairman C S Verma, while talking to the media on Friday last.

"Rourkela Steel Plant is one of the major units to be covered in this modernization package. About Rs 12,000 crore would be spent on RSP modernization alone, with a target to take its production capacity of hot metal to as high as 4.5 million tonne from its existing capacity of 2 million tonne," Verma said. "Various modernization projects of the Rourkela Steel Plant are on the verge of completion, as the sinter plant III and the new OBBP (ore bedding and Blending Plant) units will be commissioned in the next two months, and the blast furnace V will come up by June 2012," Verma added.

Verma, who is here on a two-day visit, appeared evidently optimistic about the future of the steel market, and also ruled out the possibility of any adverse market scenario for the steel industry at present. "Despite the global economic slowdown, there is still a big gap between the global average steel consumption and the per capita steel consumption in India, which is bound to go up in near future," Verma said.

"The per capita steel consumption in India is as low as 55 kg only against the world average of about 225 kg," Verma said, adding, in rural areas, it is as low as consumption 10 kg only.

"Considering the large gap in the supply and demand of steel in the Indian market, overseas steel majors like Posco and Mittal are making a beeline to set up their unit here in India," Verma added.

Giving details about the present expansion and modernization drive of SAIL, Verma said, "The modernization work of various units of SAIL has been going on in full swing with placement of orders for about Rs 56,000 crore out of total amount Rs 72,000 crore estimated to be spent on this account."

"An estimated Rs 10,500 crore has been spent for strengthening our mines and the raw material dispatch system, and modernizing various facilities in different mining units," Verma said.

"Besides, SAIL has tied up with the Indonesian government to set up a mine there and couple of mines in some other countries, which will materialize in a year or two," Verma added.

Regarding SAIL's interest in taking over Odisha's Neelachal Ispat Nigam Ltd. (NINL), Verma said, "SAIL is quite keen on taking over NINL and discussion is on with them and at the government level to take over this unit. If everything goes well, SAIL will be happy to take over this unit."